• High initial token circulation (65-75%) fosters better market dynamics post-TGE.
• Memecoins thrive due to immediate price appreciation potential compared to traditional tokens.
• Regulatory changes could level the playing field for early-stage decentralized token access.

Tokenomics, the economic design of a cryptocurrency’s token, shapes a project’s market performance and an appeal to retail investors. Traditional models featuring extended vesting schedules and low initial token circulation have become the norm, but some experts argue this approach is outdated.

Andrew Kang, Co-Founder of Mechanism Capital, stated in response to a tweet by prominent crypto figure Cobie that long investor lockups and limited token circulation at launch hinder true price discovery and can impede a project’s growth. This revelation has ignited calls within the industry for greater immediate circulation on Day 1, potentially fostering a healthier investment environment and attracting more committed participants.

The post Why High Initial Token Circulation Is the Future of Tokenomics appeared first on Coin Edition.

• High initial token circulation (65-75%) fosters better market dynamics post-TGE.
• Memecoins thrive due to immediate price appreciation potential compared to traditional tokens.
• Regulatory changes could level the playing field for early-stage decentralized token access.

Tokenomics, the economic design of a cryptocurrency’s token, shapes a project’s market performance and an appeal to retail investors. Traditional models featuring extended vesting schedules and low initial token circulation have become the norm, but some experts argue this approach is outdated.

Andrew Kang, Co-Founder of Mechanism Capital, stated in response to a tweet by prominent crypto figure Cobie that long investor lockups and limited token circulation at launch hinder true price discovery and can impede a project’s growth. This revelation has ignited calls within the industry for greater immediate circulation on Day 1, potentially fostering a healthier investment environment and attracting more committed participants.

The post Why High Initial Token Circulation Is the Future of Tokenomics appeared first on Coin Edition.