Hayden Adams, the founder of the Uniswap system, has given his thoughts on what makes for a successful token distribution or rollout. In a recent article on the X platform, the notable crypto figure highlighted ten characteristics of excellent token distributions, emphasizing the complexity of launching a cryptocurrency.
The Founder of Uniswap Discusses Token Distributions
In the opening paragraph of his analysis, Adams said that projects ought to give the community “tokens, not points.” This statement suggests that instead of points with perhaps limited utility, players should get actual tokens that have value within a certain ecosystem or on a network.
Not aimed at any specific project, but have seen a ton of discourse recently on the topic so figured I’d share my take on good token distributions:
1) tokens, not points
2) don’t farm the farmers – teasing and creating ambiguity around a token distribution to grow your numbers…
— hayden.eth 🦄 (@haydenzadams) May 4, 2024
Second, Adams cautioned against distributing tokens in a way that would be unclear or ambiguous to “farm the farmers” or attract more participants. According to the founder of Uniswap, delivering accurate information when it’s ready is an excellent token distribution technique.
Adams also labelled “low float tokens” as harmful and attacked them. The well-known DeFi leader advised project teams to make sure there are enough tokens in circulation to guard against manipulation and enable true price discovery.
Adams also advised against inflating the value of a token and predicting that it will soar before launch. The founder thinks that using a marketing firm or influencer to boost a token’s value just suggests a strategy to become rich quickly instead of making a sincere effort to create actual value.
The founder emphasized the necessity of free token airdrops during token distribution. “Don’t be stingy; give a big amount away. “If you don’t believe the community deserves a significant amount, don’t release a token,” Adams wrote in his essay.
Finally, Adams encouraged nascent crypto initiatives to be cautious and deliberate in their decision-making to avoid making mistakes that could put them at odds with the crypto community. “Create something you’re proud of and stand behind it,” the Uniswap creator advised.
Friend.tech’s “unsuccessful” token airdrop
At the start of his piece, the Uniswap creator declared unequivocally that his opinion is not directed at any specific initiative. However, the timing is significant, particularly in light of social media company Friend.tech’s “unsuccessful” token airdrop.
On Friday, May 3rd, Friend.tech airdropped its new FRIEND tokens to users in conjunction with the release of the protocol’s version 2. While the token’s value swiftly surged to $167 after debut, FRIEND’s price fell to less than $2 within a few hours.
Analysts saw liquidity concerns and a massive sell-off as the key causes of the FRIEND decline and, ultimately, the ineffective token launch. Furthermore, several users complained about how difficult it was to claim the token airdrop, citing technical issues that hampered the procedure.
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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