{"id":3381,"date":"2024-02-21T10:41:41","date_gmt":"2024-02-21T10:41:41","guid":{"rendered":"https:\/\/www.vitalstatistics.info\/?p=3381"},"modified":"2024-02-23T10:45:22","modified_gmt":"2024-02-23T10:45:22","slug":"token-distribution-models-the-metrics-that-matter","status":"publish","type":"post","link":"https:\/\/www.vitalstatistics.info\/token-distribution-models-the-metrics-that-matter\/","title":{"rendered":"Token distribution models – The metrics that matter"},"content":{"rendered":"
The token distribution model or break a crypto project. With so many projects competing for attention in a crowded market, fair, transparent, and effective distribution is essential. When investors are considering backing a new token presale, there are several key factors they analyze to determine if the model is structured for success.<\/p>\n
The total supply refers to the maximum number of tokens that will ever exist for that blockchain. This is an important factor because it gives investors clarity on the potential dilution or scarcity of the token. Many investors prefer to back projects with a fixed total supply, as it provides confidence that their share of ownership will not be inflated away over time with new token issuances. A low total supply also signals that the token aims to be a store of value, while a higher total supply tends to imply the token is meant more for utility purposes. When assessing a distribution model, helps to understand the rationale behind the total supply and ensure it aligns with the goals of the project.<\/p>\n