Allocation
What is Allocation?
Token Allocation refers to the way in which tokens or ownership rights are distributed to particular entities, which could be investors, teams, or organizations that have earned or reserved them.
Understanding Allocation
In the early stages of a cryptocurrency venture, the leadership or the community often collaborates to decide on how to effectively split token distributions among various sectors like development, marketing, operational expenses, and others. In cases where a foundation or organization manages these funds, they might opt to set up a treasury specifically for tokens to be utilized per the guidelines established by the team or community.
Investors also have the chance to receive allocations during different funding rounds. For instance, during a private sale, a team might offer allocation sizes to early backers. This means that each investor involved would receive a fraction of the total tokens available in that specific sale round. Some investors may retain allocations from multiple rounds, allowing them to engage in successive phases of an Initial Coin Offering (ICO) or similar token sales, with set distributions for each phase.Coin As a form of appreciation for their contributions, team members engaged in a particular protocol or project might receive their share from a collective team allocation. These distributions could either be delivered all at once on a designated date—like a token generation event (TGE)—or released gradually over a specified timeline.
In certain situations, the allocations are distributed progressively over time as part of a wider strategy.currency Weekly Summary on Metaverse Fundraising: Edition #5
Weekly Summary on Metaverse Fundraising: Edition #3block reward , or over a vesting term or cliff.
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