Uniswap Founder Shares His Two Cents On Good Token Distributions

Hayden Adams, founder of the Uniswap protocol, shared his opinion on what makes a good distribution or token offering. In a recent post on Platform

Uniswap founder gives an opinion on good token distributions

Adams began his view on good token allocations by saying that projects should allocate “tokens, not points” to the community. This phrase indicates that participants should obtain actual tokens that hold value within a particular ecosystem or network, rather than receiving points that may be of limited utility.

It's not aimed at any specific project, but I've been seeing a lot of discourse lately on this topic, so I decided to share my opinion on good token distributions:

1) Symbols, not dots

2) Don't farm farmers – stir up and create mystery around token distribution to increase your numbers…

— hayden.eth (@haydenzadams) May 4, 2024

Second, Adams cautioned against creating ambiguity or ambiguity around token distribution to increase the number of participants or “to grow farmers.” The practice of distributing tokens involves sharing the real details when they are ready, according to the Uniswap founder.

Additionally, Adams criticized “low-float tokens,” calling them harmful. The prominent DeFi figure urged project teams to ensure a sufficient number of tokens are available for trading to prevent manipulation and allow true prices to be discovered.

Adams also discouraged hype about the price of the token and how it will rise before its launch. The founder believes that hiring an influencer or marketing company to promote the value of the token only portrays a get-rich-quick scheme and is not a genuine attempt to build real value.

Furthermore, the Uniswap founder emphasized the importance of free token drops during token distributions. “Don't be stingy – donate a large sum. If you don't think the community deserves a large sum, don't issue a token,” Adams said in his post.

Ultimately, Adams advised new cryptocurrency projects to be careful and thoughtful in their decision-making to avoid making mistakes that could put them at odds with the cryptocurrency community. “Make something you're proud of and support it,” the Uniswap founder added.

Jab at Friend.tech and her boyfriend?

At the beginning of his post, the Uniswap founder clearly stated that the opinion is not targeting any specific project. However, the timing is interesting, especially after the “unsuccessful” token drop of social media platform Friend.tech.

On Friday, May 3, Friend.tech was airdropped New FRIEND tokens for users in conjunction with the launch of version 2 of the protocol. While the value of the token quickly rose to $167 after the launch, FRIEND's price fell below $2 within a few hours.

Analysts identified liquidity issues and mass sell-offs as the main reasons behind FRIEND's decline and, ultimately, the ineffective token launch. Furthermore, many users complained about how difficult it was to claim a token drop, with technical flaws reportedly frustrating the process.

UNI price stalls at $7.5 on the daily timeframe | Source: UNIUSDT chart on TradingView

Featured image from Shutterstock, chart from TradingView

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