Hayden Adams, founder and CEO of Uniswap, explained the ethical considerations for effective token distribution. This comes days after the cryptocurrency community raised concerns about the transparency and fairness of EigenLayer’s token distribution.
at post, Adams emphasized that he was discussing tokens, not points. He then criticized the practice of creating ambiguity and obfuscation during token distribution to inflate engagement metrics.
Adams cautioned against public speculation, mainly when the team is uncertain about its future developments. He has information about the token distribution, but he advised not to tease it unless he plans to reveal the details.
EigenLayer users who felt left out by the recent announcement again criticized the staking protocol’s Monday announcement, highlighting its non-transferable token structure, aggressive geo-restrictions, and apparently short snapshot periods.
Uniswap management strongly opposed low floating tokens, considering them malicious and most frustrating. He believes that projects can effectively distribute tokens without relying on exchanges or market makers. He said the ideal approach would be to distribute tokens publicly, enabling true price discovery on a decentralized exchange (DEX).
Adams also criticized the practice of creating excessively high token supplies to take advantage of people’s unit bias, calling such an approach unnecessary. Adams also advised token distributors not to be too conservative, encouraging them to keep a significant portion of their tokens available for distribution.
Related: The SEC is targeting Uniswap Labs, raising concerns about open source code liability.
Hayden Adams warned against inappropriate token distribution, especially if the issuer does not believe the community deserves it. He also emphasized the importance of not disclosing token prices during or before distribution. Attempting to do so through influencers or marketing companies may raise doubts about the project.
According to Adams, this approach suggests issuers are prioritizing quick wealth over building real value. Token issuers and distributors are encouraged to maintain a simple distribution process in recognition of the concerns raised by the recent industry downturn.
Lastly, Uniswap executives urged token issuers to be thoughtful and transparent about their projects. He emphasized the importance of launching a token that one can be proud of and support to avoid ridicule within the cryptocurrency community.
EigenLayer, an Ethereum re-staking protocol, distributed an additional 28 million EIGEN tokens to over 280,000 wallets following the initial airdrop due to user concerns about program limitations.
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