Token Distribution Strategies

Token Distribution Strategies

December 12, 2024 by investor

There are several strategies for distributing tokens.

Here are three key areas to consider when designing and distributing your token: Leverage the community.

Design the token incentives to encourage the community to promote it.

Give current token holders additional benefits if they attract others to the token.

This process requires more engagement from the community which takes time to bear results.

Vary the token price based on demand.

As demand for the token increases so does the price for it.

As demand decreases so also the price decreases.

This provides a pricing mechanism to increase the network and dampen speculation.

Use lockups to create price stability and token holder longevity.

In general, lockups reduce speculation overall.

Adjust the lockup period by varying the price based on hold time.

The token holder can earn a greater reward from holding the token if they commit to locking it up for a longer period.

The design, distribution, and hold time bring new strategies for distributing the token.

The goal is to encourage others to join and remain holders of the token to provide stability to the price and longevity to the community.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.


Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.


Copyright (c) 2025, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.

Tags: