Uniswap Founder on Token Distribution: If Unwilling to Share Quotas with the Community, Don’t Issue Tokens

Uniswap Founder on Token Distribution: If Unwilling to Share Quotas with the Community, Don't Issue Tokens

Uniswap Founder on Token Distribution: If Unwilling to Share Quotas with the Community, Don't Issue Tokens

After the announcement of the launch and airdrop plan of the highly anticipated EigenLayer, the transparency and fairness of its token distribution have been widely questioned by the community. In response to this, Hayden Adams, the founder and CEO of Uniswap, recently expressed his views on “token distribution”.

Hayden Adams urged project teams not to use implications or vague information to attract users’ participation for the sake of data growth, as such practices would create unnecessary expectations or misunderstandings for investors or users. Additionally, if team members or relevant individuals are aware of specific information regarding token distribution, such as timing, method, conditions, etc., Hayden Adams also advised them not to leak such information through vague expressions or implications. Instead, they should wait until they are ready to share the real details.

On the other hand, Hayden Adams also emphasized that setting the initial circulation volume too high or too low is not a good practice and considered it to be unethical behavior. This is because a low circulation volume would prevent the market from reflecting true liquidity and real price discovery. Furthermore, an absurdly high token supply is merely exploiting people’s unit bias (e.g., meme coins with low unit value), which is also unethical behavior.

Furthermore, Hayden Adams made the following recommendations:

– Do not be stingy – allocate a majority of the quota to the community. If you believe that the community does not deserve a large number of tokens, then do not distribute them.
– Do not marketize token prices – if you promote on Twitter that your token is about to skyrocket or hire influencers or marketing companies to do so, I would believe that you are only seeking quick wealth rather than creating real value.
– Keep (token distribution) simple.
– Invest genuine thought and care into your decisions – this way, you can support them and explain your reasons. Do not end up in a situation where you are forced to argue or apologize to the community. Create something that you are proud of and can support.