Token distribution tactics should focus on real value, not hype, says Uniswap founder

While
initial
interest
in
blockchain
projects
might
be
sparked
by
marketing
strategies
like
airdrops,
what
truly
matters
is
what
keeps
users
engaged
with
the
project
in
the
long
run.
Uniswap
founder
Hayden
Adams
shared
his
opinion
on
good
token
distribution,
suggesting
that
token
marketing
should
focus
on
providing
real
value,
rather
than
merely
building
hype.

“Don’t
market
token
price
–
if
you
tweet
about
how
your
token
is
going
to
moon
or
hire
influencers,
or
marketing
firms
to
do
so
I
assume
you’re
just
trying
to
get
rich
quick
vs
build
real
value,”
Adam
noted
in
a
recent

discussion
on
the
ethics
of
token
distribution.

Adam
also
outlined
several
principles
he
believes
should
guide
token
distributions,
including
the
avoidance
of
ambiguous
teasers
and
the
necessity
for
real
liquidity
from
day
one.

“Don’t
farm
the
farmers
–
teasing
and
creating
ambiguity
around
a
token
distribution
to
grow
your
numbers
is
bad
behavior.
If
you
don’t
know
yet,
don’t
speculate
publicly.
If
you
do
know
but
are
not
ready
to
share
full
details,
don’t
tease
them
out.
Just
share
real
details
when
ready,”
Adam
stated.

He
additionally
criticized
the
creation
of
low-float
tokens,
which
he
considers
“malicious,”
and
the
manipulation
of
token
supply
to
exploit
unit
bias.

“You
don’t
need
to
work
with
exchanges
or
market
makers.
It’s
so
easy.
Just
distribute
enough
tokens
publicly
that
real
price
discovery
happens
on
DEX.
People
should
start
thinking
in
FDV
not
[market
cap]
when
valuing
these
things,”
Adam
noted.

 “Don’t
create
absurdly
high
token
supply
to
farm
people
with
unit
bias,
this
is
also
bad
behavior,”
he
added.

Adam
further
advised
against
stinginess
in
token
distribution.
According
to
him,
giving
away
a
significant
portion
of
tokens
to
the
community
shows
a
commitment
to
the
community’s
growth
and
trust.

 “If
you
don’t
think
the
community
deserves
a
significant
amount,
don’t
release
a
token,”
he
stated.

The
Uniswap
founder
stressed
the
importance
of
making
deliberate
and
well-considered
decisions
regarding
token
distribution.
According
to
him,
projects
should
be
able
to
stand
behind
their
choices
with
confidence
and
clear
reasoning,
without
having
to
constantly
defend
themselves
or
apologize
for
their
actions.

“Put
real
thought
and
care
into
your
decisions
–
so
you
can
stand
behind
them
and
explain
your
rationale.
Don’t
end
up
in
a
situation
where
you’re
fighting
or
apologizing
to
crypto
twitter.
Create
something
you’re
proud
of
and
stand
behind
it,”
he
stated.

Adam’s
comments
follow
recent
debates
surrounding
token
airdrops
and
distributions
of
several
prominent
projects,
which
attracted
mixed
opinions
from
the
communities
after
announcing
their
tokenomics.

A
highly-anticipated
token
airdrop
from
LayerZero
also
received
criticism
and
praise
for
its

approach
to
Sybil
behavior.

LayerZero
benefited
massively
from
airdrop
farmers
for
years,
but
now
when
it
comes
time
to
drop
the
token…
farming
is
suddenly
now
a
problem?

Airdrop
farmers
definitively
provide
value
to
protocols

They
help
(1)
stress
test
infra
so
issues
can
be
resolved
sooner
rather
than…

—
Zach
Rynes
|
CLG
(@ChainLinkGod)

May
3,
2024

Clever
way
to
force
the
prisoner’s
dilemma
on
sybilers.

Sybilers
can’t
predict
the
effectiveness
of
LZ’s
filtering
efforts,
so
there’s
some
uncertainty.

Instead
of
allowing
them
to
be
helpless,
LZ
is
using
that
uncertainty
to
*fuel*
their
filtering
efforts.

LZ
is
betting
that…

https://t.co/BhdHHMgcek

—
kenton.eth
(@KentonPrescott)

May
3,
2024