SolStack

Token Distribution Models

In Tokenomics & Economics

Plain English

How new tokens are given out to different groups. Fair launches give everyone equal opportunity. VC allocations reserve tokens for investors. Airdrops distribute to existing users. Different models affect who controls the network and its value.

Technical

Mechanisms for initial token allocation affecting decentralization, community ownership, and long-term sustainability. Models include: fair launch (equal access), VC allocation (investor funding), team allocation (developer incentives), community rewards (usage incentives), and treasury reserves (protocol development). Distribution design significantly impacts governance power and token value accrual.