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Although initial interest in blockchain projects may be sparked by marketing strategies such as airdrops, what really matters is what keeps users engaged in the project in the long term. Uniswap founder Hayden Adams shared his thoughts on good token distribution, suggesting that token marketing should focus on providing real value, rather than just creating hype.
“Don't market the price of the token – if you're tweeting about how your token is going to grow or hiring influencers or marketing companies to do it, I'm guessing you're just trying to get rich quick rather than creating real value,” Adam noted in an article. recent discussion on the ethics of token distribution.
Adam also highlighted several principles that he believes should guide token distribution, including avoiding ambiguous teasers and the need for real liquidity from day one.
“Don’t exploit farmers – teasing and creating ambiguity around a token distribution to boost your numbers is bad behavior. If you don't know yet, don't speculate publicly. If you know but aren't ready to share all the details, don't reveal them. Just share the real details when you’re ready,” Adam said.
He also criticized the creation of low-float tokens, which he considers “malicious,” and the manipulation of the token supply to exploit unit bias.
“You don’t need to work with exchanges or market makers. It's so easy. Simply distribute enough tokens publicly for real price discovery to occur on DEX. People should start thinking in FDV and not (market capitalization) when evaluating these things,” Adam noted.
“Don’t create an absurdly high token offer for farmers with unitary bias, that’s also bad behavior,” he added.
Adam further advised against greed in the distribution of tokens. According to him, donating a significant portion of tokens to the community shows a commitment to community growth and trust.
“If you think the community doesn’t deserve a large sum, don’t release a token,” he said.
The Uniswap founder emphasized the importance of making deliberate and well-considered decisions regarding token distribution. He said projects should be able to justify their choices with confidence and clear reasoning, without having to constantly defend or apologize for their actions.
“Put real thought and care into your decisions – so you can support them and explain your rationales. Don't find yourself in a situation where you fight or apologize to Twitter crypto. Create something you’re proud of and support it,” he said.
Adam's comments follow recent debates around token drops and distribution of several prominent projects, which sparked mixed opinions from communities following their tokenomics announcement.
A highly anticipated token drop of LayerZero also received criticism and praise for its approach to Sybil's behavior.
LayerZero has benefited massively from parachute farmers for years, but now when it comes time to abandon the token…has farming suddenly become a problem?
Airdrop Farmers Definitely Bring Value to Protocols
They help (1) test the infra so that problems can be resolved sooner than expected…
-Zach Rynes | CLG (@ChainLinkGod) May 3, 2024
A clever way to impose the prisoner's dilemma on the sybilers.
Sybilers cannot predict the effectiveness of LZ's filtering efforts, so there is some uncertainty.
Instead of leaving them powerless, LZ uses this uncertainty to *fuel* its screening efforts.
– kenton.eth (@KentonPrescott) May 3, 2024
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