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

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."