Exploring the Optimal Token Distribution Structure: TGE unlocks 5%, circulating supply not exceeding 15%

Original Title: 《What's the best token distribution in 2024?》

Author: Ronin

Compiled by: Deep Tide TechFlow

In the past 6 months, I have invested in 189 private/KOL rounds and identified the best-performing distribution strategies.

"Oh no, why should I read this thing!?"

A good product and a community built around the project are fantastic.

But this does not guarantee further growth of the token, especially if the token economic model is designed only for the next 1-2 years.

First of all, the fundamentals should address significant pressure issues, which is why I want to share this information with you.

The Best Token Economics I Would Invest In

TGE Unlock 5-7%

Yes, we want to profit quickly, and we want it now. But we want to taste the profit ahead of time at launch. With such a TGE, we can achieve:

• Low token circulation (this leaves a lot of room for rapid market cap growth)

• Stable and growing token price

• Opportunities to close positions driven by investors during a bull market

11-15% Circulating Supply at TGE

The unlocking system is as follows:

• 11-15% at launch ---> 20% by the end of the first year ---> 30-35% by the end of the second year ---> then, linear unlocking continues for several years

3-6 Months Lock-up Period

Investing with a 12-month lock-up period is a very foolish idea because our unlocking will occur during a bear market. However, a 6-month lock-up period can help retail investors feel more confident about the token, leading to more purchases and additional liquidity.

If retail investors are confident, then investors and market manipulators will be very cautious. This means we will grow steadily over the next few months or years, which is why we will sell our tokens at market peaks.

Team Vesting After Investors (Rules)

Linear Vesting

• Daily ------ very good

• Monthly ------ good

• Quarterly ------ not good

Best Distribution

• 30-40% for community/ecosystem

• 15% for investors

• 15% for founders

• 25% for reserve funds

• 5% for advisors/KOL

• 5% for market makers and CEX

Ideally, the unlocking ratio on the day of TGE (Token Generation Event) should be 4% for investors/advisors, 5% for public sales, and 6% for community/reserves, totaling 15%.

Conclusion

If you decide to invest in any altcoin, please check against the standards I described above.

If you decide to invest in any private/KOL rounds, also carefully check the standards I provided (but sometimes, you can look for better and faster trades).

I hope my losses over the past 6 months can at least teach some people to achieve greater profits in their investments.

Remember! If you trade ------ you are gambling.

If you analyze and operate based on news ------ you are a master.

Trading solely based on hype, smart money movements, or technical analysis is a bad idea. You also need to follow the fundamentals and current news (this is the only secret to success).