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Mechanism Capital co-founder: The best token economic model design is not to set lock-in restrictions on investors
2024-10-27 14:27
Odaily News Andrew Kang, co-founder of Mechanism Capital, wrote on X Platform: “It sounds counterintuitive, but the best token economics design for a project is to not set lock-up restrictions on investors and to allow as many tokens as possible to circulate on day one (except for team and treasury shares). A 1-year lock-up period plus a 3-4-year release period is a poor standard that stems from a misunderstanding of capital markets and lazy copying of previous projects. In fact, longer unlocking restrictions have little impact on investors' investment after the TGE, and good investors will support the project regardless of whether the tokens have been unlocked. The industry's standards need to change.”