What Is Token distribution?

In decentralised finance, a token distribution refers to how the project tokens have been divided between different stakeholders.

More decentralised token distribution is usually good for price action and robustness of the project; there are less large entities that can dominate the DAO governance discussion or be a single point of a failure. Decentralisation and better token distribution lessen the likelihood of severe price impact events.

Token distribution methods include

  • Initial coin offering (ICO)

  • Initial DEX offering (IDO)

  • Initial token offering (ITO)

  • Direct market listing

  • Public sale

  • Private sale

  • Simple Agreement for Future Tokens (SAFT)

  • Airdrop

  • Liquidity mining

  • Yield farming

  • Proof-of-work (Bitcoin, Chia, others)

See also

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