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

• Decentralised finance

• Decentralised exchange

• Token