🧐CZ releases "Crazy Ideas for Token Issuance" —

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2 days ago

🧐 CZ releases "Crazy Ideas for Token Issuance" —

The initial 10% of tokens are unlocked and sold on the market, with the proceeds used for the project team's development of products/platforms, marketing, compensation, etc.

Each future unlocking must meet corresponding conditions to be unlocked, and the conditions are locked in a smart contract;

CZ's post provides an example:

1) Assume the token generation event (TGE) occurs in January, with an initial price of $1, and 10% of the tokens are unlocked and sold.

2) By June, if the token price is still below $2, no additional tokens can be unlocked.

3) Assume from July 4 to August 3, the token price is above $2 for 30 consecutive days, then on August 3, up to 5% of the tokens can be unlocked for circulation, assuming the price at that time is $3.

4) The next possible unlocking can occur no earlier than March 3 of the following year, and only if the price has been above $6 (twice the last unlocking price of $3) for 30 consecutive days before the unlocking.

I think this is a good approach; this model differs from traditional token unlocking schedules, which typically release tokens on a fixed timetable (such as monthly or quarterly) regardless of market conditions.

This unlocking may better align with investor expectations and impose stricter limitations on VCs, aligning more with the interests of the general public. However, it also adds complexity, as the team must navigate time and price thresholds, which can be challenging in a volatile market.

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