The Uniswap founder says token distribution strategies should focus on real value, not hype.

Initial interest in a blockchain project may be sparked by marketing strategies like airdrops, but what’s truly important is keeping users engaged with the project over the long term. Uniswap founder Hayden Adams shared his thoughts on a good token distribution, suggesting that token marketing should focus on delivering real value and not simply building hype.

“Don’t market the price of your token. If you tweet about how your token will rise, hire an influencer, hire a marketing firm, I assume you’re just trying to get rich quick and build real value.” Adam said. Recent discussions on the ethics of token distribution.

Adam also outlined some of the principles he believes should guide token distribution, including avoiding vague teasers and the need for real liquidity from day one.

“Don’t farm the farmers. Teasing or creating ambiguity about token distribution to boost numbers is bad behavior. If you don’t know yet, don’t speculate publicly. If you know but aren’t ready to share full details, don’t tease. When you’re ready, share the real details,” Adam said.

He also criticized the creation of low-volatility tokens, which he considered “malicious,” and the manipulation of token supply to exploit unit bias.

“There is no need to work with exchanges or market makers. It’s so easy. Distribute enough tokens publicly to enable real price discovery to occur on the DEX. People need to start thinking in FDV rather than (market cap) when evaluating these things,” Adam said.

“Don’t create ridiculously high token supply for people who farm with a unit bias. “This is also bad behavior,” he added.

Adam advised to avoid being stingy when it comes to token distribution. According to him, giving a significant portion of tokens to the community shows commitment to the growth and trust of the community.

“If you don’t think the community deserves a significant amount of money, don’t issue tokens,” he said.

The Uniswap founder emphasized the importance of making careful and prudent decisions regarding token distribution. According to him, projects should be able to back up their choices with confidence and clear reasoning, without having to constantly defend or apologize for their actions.

“When making decisions, use real thought and caution to support your decisions and explain your rationale. Don’t get into a fight/apologize situation with crypto Twitter. Build something you’re proud of and stand behind it,” he said.

Adam’s comments follow recent controversy surrounding token airdrops and distribution for several major projects. This sparked mixed opinions in the community following the announcement of token economics.

LayerZero’s much-anticipated token airdrop also received criticism and praise for its approach to Sybil behavior.

LayerZero has been profiting hugely from airdrop farmers for years, but now it’s time to drop the tokens… Is farming suddenly a problem?

Airdrop farmers certainly bring value to the protocol.

(1) Supports stress testing infrastructure, allowing you to resolve issues faster.

— Jack Lines | CLG (@ChainLinkGod) May 3, 2024

It’s a clever way to force the sibyl into a prisoner’s dilemma.

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

Instead of allowing them to be powerless, LZ is using this uncertainty to *facilitate* their filtering efforts.

LZ is… You are betting on https://t.co/BhdHHMgcek.

— kenton.eth (@KentonPrescott) May 3, 2024