Token distribution strategies should focus on real value, not incentives, says the founder of Uniswap

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While initial interest in blockchain projects may be fueled by marketing tactics like airdrops, the most important thing is to keep users engaged with the project in the long term. Uniswap founder Hayden Adams shared his thoughts on a good token distribution, suggesting that token trading should focus on providing real value rather than incentivizing it.

“Don't offer token value – I guess if you tweet about how your token is going to the moon or influencers or marketing firms, or marketing firms trying to get rich quick to build real value,” Adam said. A recent discussion on the ethics of token distribution.

Adam also outlined a number of principles he believes should guide token distributions, including avoiding ambiguous t-shirts and the need for real liquidity from day one.

“Don't raise farmers – it's bad behavior to tease and create doubt around token distribution to increase your numbers. If you don't know yet, don't officially assume. If you know but aren't ready to share full details, don't tease them. Share real details when ready,” Adam said.

He also criticized the creation of low-float tokens, which he considered “malicious”, and the use of token offerings to exploit unit bias.

“No need to work with exchanges or market makers. It is very simple. Publicly distribute enough signals that real price discovery is happening on the DEX. People should not start thinking with FDV [market cap] As he evaluates these things,” Adam said.

“Don't create an incredibly high token supply for unit-biased farmers, which is bad behavior,” he added.

Adam also recommended greed in token distribution. According to him, giving a significant share of token to the community shows his commitment to the development and trust of the community.

“If you don't think the community deserves a large amount, don't give a token,” he said.

Uniswap's founder emphasized the importance of making deliberate and well-thought-out decisions regarding token distribution. According to him, projects must be confident and rational in their choices without constantly defending themselves or apologizing for their actions.

“Put real thought and care into your decisions – stand behind them and justify them. Don't end up fighting on crypto-twitter or apologizing. Create something you're proud of and stand behind it,” he said.

Adam's comments echo the recent debates surrounding token airdrops and distributions of several prominent projects, which have drawn mixed reactions from the community after announcing their Tokinomics.

The highly anticipated token Airdrop from LayerZero has also received criticism and praise for its approach to Sybil's character.

LayerZero has been a huge hit with airdrop farmers for years, but now that the token is being phased out… is farming suddenly in trouble?

Airdrop farmers value protocols

(1) Stress testing helps infra so that issues can be resolved quickly…

– Zach Rynes | CLG (@ChainLinkGod) May 3, 2024

A clever way to force the prisoner's dilemma on Sibiler.

Sibilers cannot predict the effectiveness of LZ screening efforts, so there are some uncertainties.

LZ is using uncertainty to *fuel* their detection efforts instead of allowing them to be helpless.

LZ is betting…

— kenton.eth (@KentonPrescott) May 3, 2024

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