NC Wallet News

View all

Master Tokenomics

How and Why Evaluate Token Distribution

Key to Crypto: Token Supply

The time has come to know another vital aspect of tokenomics to make reasonable decisions in the complicated crypto universe. You’ve already explored token supply and issuance, now let’s discover how token distribution affects the sustainability and stability of a certain cryptocurrency.

What is it?

The token distribution shows how cryptocurrency is shared (allocated) among different user groups: founders, investors, and the community. Thanks to blockchain transparency, you can easily check the real token distribution. Just visit the necessary blockchain explorer, for example, for ETH check here, TRX here. Look at the chart — we will help you to read it.

What does a good distribution look like?

Take a look at the token holders’ chart with one simple rule in mind: “More for the community and less for founders or investors.” Blockchain was designed to be a decentralised entity. But when a large proportion of coins is allocated in one hand, decentralisation is weakening. If one day someone with a massive amount of particular coins decides to sell them, it may cause an unprecedented drop in price for the asset. So, the more widely distributed the token is — the better. Why? This can help prevent centralisation, market manipulation, and create a sustainable ecosystem.

Initial token distribution and fair launch

The initial distribution shows how tokens were shared among users at the launch of the project. In an ideal world, founders, investors and individuals have an equal chance to purchase a new token, which is called a fair launch. But in reality, developers do not always allocate their tokens fairly. On the contrary, they distribute the tokens to themselves first, leaving a minimum for the public. It doesn’t mean that one should choose only fairly launched projects, but it’s better to opt for more widely distributed coins.

Note that as investors and individuals buy and sell tokens, they alter hands, thus changing the picture of token distribution. Be sure to stay up to date with the current token distribution.

Learn crypto basics, stay informed about the trends, and manage your cryptocurrencies with peace of mind in the no-fee NC Wallet.

TO NC WALLET

Recently Added

Use USDT — Now on Solana Network!
You all love Solana for its speed and low network fees. Now, you can enjoy even more transactions on this blockchain because we've added USDT to Solana!
Published:
Demand & Utility: Why Do They Matter for Crypto?
Why do people prefer one crypto to another? Today, we reveal the secrets of demand: why one coin is popular and reliable while others are not.
Published:
Hurry to Add TON to Your Wallet!
Looking to elevate your Telegram experience to new heights? Say hello to TON!
Published: