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BTC $78,798.87 +0.59%
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BNB $748.76 -0.57%
XRP $1.42 +1.71%
SOL $103.31 +0.37%
TRX $0.3387 +0.22%
DOGE $0.0902 +0.71%
ADA $0.2171 -0.26%
BCH $257.27 +0.67%
LINK $12.05 -3.84%
HYPE $85.79 +2.69%
AAVE $128.50 -1.30%
SUI $0.8033 -1.45%
XLM $0.1870 -1.28%
ZEC $1,246.76 +8.07%

Mechanism Capital Co-founder: The Best Token Economic Model Design Does Not Require Lock-up Restrictions for Investors

2024-10-27 23:41:13

ChainCatcher news, Mechanism Capital co-founder Andrew Kang posted on X platform stating: "This may sound counterintuitive, but the best token economic model design for a project is to not set lock-up restrictions for investors and to allow as many tokens to circulate as possible from day one (excluding team and treasury shares).

A 1-year lock-up period followed by a 3 to 4-year release period is a poor standard, stemming from a misunderstanding of capital markets and lazy replication of previous projects. In reality, longer unlock restrictions have little impact on investor participation after TGE; excellent investors will support the project regardless of whether the tokens are unlocked. The industry standard needs to change."

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