Bankless Founder: By 2026, Tokens Will Finally Be Treated as 'Equity'
- Core Viewpoint: The article points out that represented by MegaETH's KPI token vesting plan and Cap protocol's stablecoin airdrop + token sale model, crypto projects in 2026 are ending the era of indiscriminate "spray-and-pray" airdrops through more precise, conditional token distribution mechanisms, aiming to enhance token quality and holder loyalty.
- Key Elements:
- MegaETH has locked 53% of its tokens in a KPI plan, where their release is tied to specific performance metrics like ecosystem growth and decentralization, aiming to synchronize token issuance with value creation.
- MegaETH's KPI-unlocked tokens will be allocated to long-term stakers, shifting dilution risk to the most loyal holders who are least likely to sell.
- The Cap protocol adopts a "stablecoin airdrop," distributing cUSD stablecoins with real value to users instead of governance tokens, to fulfill value commitments.
- The Cap protocol requires users who want to obtain the governance token CAP to participate in the token sale with real capital, thereby filtering for long-term investors willing to take on risk.
- The core of these two innovative models is shifting from pursuing "broad distribution" to optimizing "holder concentration," aiming to build a more solid holder base.
Original Author: David Hoffman
Original Compilation: TechFlow
Introduction: Are most tokens trash? Bankless co-founder David Hoffman points out that historically, teams have treated tokens far less seriously than equity, and the market has reflected this in their prices.
But 2026 brought a turning point:
MegaETH locked 53% of its tokens in a KPI plan, unlocking them only upon achieving growth targets;
The Cap protocol replaced a governance token airdrop with a stablecoin airdrop, with real investors able to acquire CAP through a token sale.
These innovative strategies are ending the era of "spray-and-pray" token distribution, shifting towards precise, conditional allocation mechanisms.
Full text below:
The crypto industry has a "good coins problem."
Most tokens are trash.
Most tokens are not treated by teams with the same legal and strategic seriousness as equity. Because teams have historically not afforded tokens the same respect as equity in companies, the market has reflected this in token prices.
Today, I want to share two data points that make me optimistic about the state of tokens in 2026 and beyond:
- MegaETH's KPI Plan
- Cap's Stablecoin Airdrop (Stabledrop)
Conditionalizing Token Supply
MegaETH has locked 53% of the total MEGA token supply in a "KPI Plan." The logic is: if MegaETH does not meet its KPIs (Key Performance Indicators), these tokens will not unlock.
Therefore, in a pessimistic scenario where the ecosystem does not grow, at least no additional tokens flood the market to dilute holders. MEGA tokens only enter the market when the MegaETH ecosystem actually achieves growth (as defined by the KPIs).
The plan's KPIs are divided into 4 scoreboards:
- Ecosystem Growth (TVL, USDM supply)
- MegaETH Decentralization (L2Beat Stage progress)
- MegaETH Performance (IBRL)
- Ethereum Decentralization
Thus, in theory, as MegaETH hits its KPI targets, the value of MegaETH should grow correspondingly, mitigating the negative price impact of MEGA dilution on the market.
This strategy closely resembles the "pay for performance" compensation philosophy behind Tesla's package for Elon Musk. In 2018, Tesla granted Musk an equity compensation package that vests in tranches, payable only when Tesla simultaneously achieves escalating market cap and revenue targets. Elon Musk only gets paid if Tesla grows revenue *and* grows its market cap.
MegaETH is attempting to transplant the same logic into its tokenomics. "More supply" is not a given—it's something the protocol must earn by scoring real points on meaningful scoreboards.
Unlike Musk's Tesla benchmarks, I don't see anything in Namik's KPI targets about making MEGA's market cap a KPI target—perhaps for legal reasons. But as a public sale investor in MEGA, this KPI is indeed interesting to me. 👀
Who Gets the Unlock Matters
Another interesting factor of this KPI plan is: who gets the MEGA when KPIs are met. According to Namik's tweet, the people who receive the unlocked MEGA are those who have staked MEGA into the lockup contract.
Those who have locked more MEGA for longer periods get access to the 53% of MEGA tokens entering the market.
The logic behind this is simple: allocate MEGA dilution to those who have already proven themselves as MEGA holders and are interested in holding more MEGA—those least likely to be MEGA sellers.
Alignment and Trade-offs
It's worth emphasizing that this also introduces risk. We have seen historical examples of similar structures going seriously wrong. Look at this excerpt from Cobie's article: "(content)"
If you are a token pessimist, crypto nihilist, or just bearish, this alignment problem is what you worry about.
Or, from the same article: "Staking mechanisms should be designed to support the goals of the ecosystem"
Locking token dilution behind KPIs that should actually reflect growth in the value of the MegaETH ecosystem is a much better mechanism than any vanilla staking mechanism we saw in the 2020-2022 liquidity mining era. In that era, tokens were being issued regardless of the team's fundamental progress or ecosystem growth.
Therefore, the net effect is MEGA dilution that is:
- Conditioned on corresponding growth of the MegaETH ecosystem
- Diluted into the hands of those least likely to sell MEGA
This does not guarantee that MEGA's value will rise because of it—the market will do what the market wants. But it is an effective and honest attempt to fix a core underlying problem that seems to plague the entire crypto token industrial complex.
Treating Tokens Like Equity
Historically, teams have been "spraying and praying" their tokens across the ecosystem. Airdrops, farming rewards, grants, etc.—teams would not engage in these activities if they were distributing something of real value.
Because teams distributed tokens like worthless governance tokens, the market priced them as worthless governance tokens.
You can see the same philosophy in MegaETH's stance on CEX listings after Binance opened MEGA token futures on its platform (historically, Binance has attempted to use this as leverage against teams):
Hopefully, teams will start being more selective with their token distribution. If teams start treating their tokens as precious, perhaps the market will respond in kind.
Cap's Stablecoin Airdrop
The stablecoin protocol Cap introduced a "stabledrop" instead of a traditional airdrop. Rather than airdropping the native governance token CAP, they distributed the native stablecoin cUSD to users who earned Cap points.
This approach rewards point farmers with real value, thus fulfilling the social contract. Users who deposited USDC into Cap's supply side accepted smart contract risk and opportunity cost, and the stabledrop compensated them accordingly.
For those who want CAP itself, Cap is conducting a token sale via a Uniswap CCA. Anyone seeking CAP tokens must become a real investor and commit real capital.
Filtering for Committed Holders
The combination of a stabledrop plus a token sale filters for committed holders. A traditional CAP airdrop would flow to speculative farmers likely to sell immediately. By requiring capital investment through a token sale, Cap ensures CAP flows to participants willing to accept full downside risk for upside potential—a group more likely to hold long-term.
The theory is that this structure gives CAP a higher probability of success by creating a concentrated holder base aligned with the protocol's long-term vision, rather than a less precise airdrop mechanism that puts tokens in the hands of those focused solely on short-term profits.
Watch this video:
https://x.com/DeFiDave22/status/2013641379038081113
Token Design is Maturing
Protocols are getting smarter and more precise with their token distribution mechanisms. No more shotgun spray-and-pray token issuance—MegaETH and Cap are choosing to be highly selective about who gets their tokens.
"Optimizing for distribution" is no longer the thing—perhaps a toxic hangover from the Gensler era. Instead, these two teams are optimizing for concentration to provide a stronger foundational holder base.
I hope that as more apps launch in 2026, they can observe and learn from these strategies, and even improve upon them, so that the "good coins problem" is no longer a problem, and we are left with only "good coins."
