Hayden Adams, founder of the Uniswap protocol, has shared his thoughts on what characterizes a good distribution or rollout of a token. In a recent post on the X platform, the prominent crypto figure listed 10 qualities of good token distributions, highlighting the complexities surrounding the launch of a cryptocurrency.
Uniswap Founder Gives Opinions on Good Token Distributions
Adams started his take on good token distributions by stating that projects should allocate “tokens, not points” to the community. This phrase implies that participants should receive actual tokens that have value within a given ecosystem or on a network, rather than receiving points that may have limited utility.
Not targeting any specific project, but I’ve seen a lot of discussions on this topic lately so I thought I’d share my thoughts on good token distributions:
1) tokens, not points
2) don’t farm the farmers – tease and create ambiguity around a token distribution to grow your numbers…
— hayden.eth 🦄 (@haydenzadams) May 4, 2024
Second, Adams warned against creating ambiguity or vagueness about a symbolic distribution to increase the number of participants or to “work the farmers.” Good token distribution practice includes sharing real details when ready, according to Uniswap’s founder.
Furthermore, Adams criticized “low float tokens,” calling them evil. The prominent DeFi figure urged project teams to ensure there are enough tokens in circulation to prevent manipulation and enable real price discovery.
Adams also discouraged hyping a token’s price and how it will skyrocket before launch. The founder believes that hiring an influencer or a marketing company to promote the value of a token is just a get-rich-quick scheme, and not a genuine attempt to build real value.
Furthermore, the Uniswap founder emphasized the importance of free token airdrops during token distributions. “Don’t be stingy – give away a significant amount of money. If you don’t think the community deserves a significant amount of money, don’t release a token,” Adams said in his post.
Ultimately, Adams advised new crypto projects to be careful and thoughtful in their decision-making to avoid mistakes that could put them at odds with the crypto community. “Create something you are proud of and stand behind it,” the Uniswap founder added.
A joke at Friend.tech and its FRIEND?
At the beginning of his post, the Uniswap founder clearly stated that his opinion is not focused on any specific project. However, the timing is interesting, especially after the “failed” token airdrop from social media platform Friend.tech.
On Friday May 3, Friend.tech has been broadcast are new FRIEND tokens for users in conjunction with the launch of version 2 of the protocol. While the token’s value quickly rose to $167 after launch, FRIEND’s price fell below $2 within a few hours.
Analysts pointed to liquidity issues and a massive sell-off as the main reasons behind FRIEND’s decline and, ultimately, the ineffective launch of tokens. Furthermore, many users complained about how difficult it was to claim the token airdrop, as technical drawbacks reportedly frustrated the process.
UNI price stalls at $7.5 on the daily timeframe | Source: UNIUSDT chart on TradingView
Featured image from Shutterstock, chart from TradingView
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