Cryptocurrency Q&A
What are the different types of token allocation?
What are the different types of token allocation?
Gianluca
Fri Feb 28 2025
|
5
answers
689
I am trying to understand the various methods of token allocation. I want to know the different strategies or types of allocating tokens, possibly in the context of blockchain or cryptocurrency.
5 answers
mia_rose_lawyer
Sun Mar 02 2025
The allocation categories in blockchain projects are diverse and encompass several key groups.
Was this helpful?
117
50
SamsungShine
Sun Mar 02 2025
Private investors are individuals or organizations that invest in a project before it goes public. They often contribute significant capital in exchange for a stake in the project's future success.
Was this helpful?
127
92
EthereumEmpireGuard
Sun Mar 02 2025
Public investors, on the other hand, invest in the project after it has been listed on a cryptocurrency exchange. They buy tokens in the open market and hope to see their value appreciate over time.
Was this helpful?
154
97
CosmicWave
Sun Mar 02 2025
Founders and team members typically hold a substantial portion of the tokens. This allocation serves as an incentive for them to continue working on the project's success. Advisors and partners may also receive tokens as compensation for their contributions.
Was this helpful?
151
36
Andrea
Sat Mar 01 2025
Community and rewards tokens are distributed to users who actively participate in the project's ecosystem. This can include developers, contributors, and active community members. Liquidity tokens are reserved to ensure the smooth functioning of the project's markets.
Was this helpful?
140
36
