The Flawed Token Distribution Model in Crypto

The current dominant model of token distribution, known as the 'low-float, high FDV' launch, is inherently broken. This model restricts the movement of tokens, distorting market signals and misleading both existing and potential network participants. As a result, most of the upside potential of new launches is captured by private investors, leaving little for public markets. This approach prioritizes short-term metrics at the expense of long-term sustainability and public trust. The concept of 'vesting' in crypto is also misguided, as it lacks the performance expectations and mechanisms for revoking ownership stakes that exist in traditional finance. Instead, tokens are simply locked up for a fixed period, creating false market signals and giving unfair advantages to sophisticated holders. These lockups ultimately harm the public and degrade market quality. A better approach, known as the 'free-market launch,' allows everyone to freely express their preferences, creating a more sustainable community of stakeholders who truly believe in the project. This approach has been limited to meme coins but could be beneficial for more serious projects, prioritizing long-term value over short-term gains. It's time for the crypto industry to experiment with new models and break away from the flawed 'low-float, high FDV' orthodoxy.