Uniswap Founder Shares His Two Cents On Good Token Distributions

Hayden Adams, founding father of the Uniswap protocol, has shared his opinion on what characterizes an excellent distribution or rollout of a token. In a current publish on the X platform, the outstanding crypto determine listed 10 qualities of fine token distributions, highlighting the complexities surrounding the launch of a cryptocurrency.

Uniswap Founder Provides Opinion On Good Token Distributions

Adams started his tackle good token distributions by stating that tasks ought to allocate “tokens, not factors” to the group. This phrase implies that members ought to obtain precise tokens that maintain worth inside a specific ecosystem or on a community, as a substitute of receiving factors that will have restricted utility.

Not geared toward any particular venture, however have seen a ton of discourse not too long ago on the subject so figured I’d share my tackle good token distributions:

1) tokens, not factors

2) don’t farm the farmers – teasing and creating ambiguity round a token distribution to develop your numbers…

— hayden.eth 🦄 (@haydenzadams) May 4, 2024

Secondly, Adams warned towards creating ambiguity or being imprecise a couple of token distribution to extend the variety of members or to “farm the farmers.” An excellent token distribution apply consists of sharing actual particulars when prepared, in response to the Uniswap founder.

Moreover, Adams criticized “low float tokens,” whereas calling them malicious. The outstanding DeFi determine urged venture groups to make sure adequate tokens can be found in circulation to forestall manipulation and permit real value discovery.

Adams additionally discouraged hyping a token’s value and the way it will skyrocket earlier than it launches. The founder believes hiring an influencer or a advertising and marketing firm to advertise a token’s worth solely depicts a get-rich-quick scheme fairly than a real try at constructing actual worth.

What’s extra, the Uniswap founder confused the significance of free token airdrops throughout token distributions. “Don’t be stingy – give a major quantity away. If you happen to don’t assume the group deserves a major quantity, don’t launch a token,” Adams stated in his publish.

In the end, Adams suggested new crypto tasks to watch out and considerate of their decision-making to keep away from making errors that may put them at odds with the crypto group. “Create one thing you’re pleased with and stand behind it,” the Uniswap founder added.

A Jab At Pal.tech and its FRIEND?

At first of his publish, the Uniswap founder clearly acknowledged that the opinion will not be geared toward any particular venture. Nevertheless, the timing is attention-grabbing, particularly after social media platform Friend.tech’s “unsuccessful” token airdrop.

On Friday, Might third, Friend.tech airdropped its new FRIEND tokens to customers together with the launch of the protocol’s model 2. Whereas the token’s worth shortly rose to $167 after launch, FRIEND’s value nosedived to under $2 inside a number of hours.

Analysts pinpointed liquidity points and a mass sell-off as the first causes behind the downturn of FRIEND and, in the end, the ineffectual token launch. Furthermore, many customers complained about how difficult it was to assert the token airdrop, as technical drawbacks reportedly pissed off the method.

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