- EigenLayer users expressed dissatisfaction with an airdrop, citing issues with token structure, geo-restrictions, and a short snapshot period.
- Adams stressed transparent pricing during distribution, discouraging influencer or marketing firm involvement, which raises doubts about project motives.
Hayden Adams, the CEO of Uniswap, recently discussed the ethics of token distribution. This discussion came after concerns emerged regarding the fairness of token distribution on EigenLayer.
He warned against public speculation when a project’s future is uncertain. Adams discouraged teasing information about token distribution without clear intentions to disclose details.
Not aimed at any specific project, but have seen a ton of discourse recently on the topic so figured I’d share my take on good token distributions:
1) tokens, not points
2) don’t farm the farmers – teasing and creating ambiguity around a token distribution to grow your numbers…
— hayden.eth 🦄 (@haydenzadams) May 4, 2024
Several EigenLayer users expressed dissatisfaction with a recent airdrop announcement, highlighting issues with the nontransferable token structure, geo-restrictions, and a brief snapshot period.
Adams expressed his disapproval of tokens with limited circulation, seeing them as detrimental. He championed widespread token distribution to enable authentic price discovery on decentralized exchanges (DEX).
Additionally, Adams opposed the practice of creating large token supplies to manipulate investor preferences based on unit bias, deeming it unnecessary. He advised token distributors to release a significant share of their tokens to the public.
The importance of transparent pricing during distribution
He argued against revealing token prices through influencers or marketing firms, which raises doubts about a project’s motives.
He recommended that focusing on rapid riches rather than establishing genuine value is detrimental. He urged token issuers to ensure a transparent distribution process, addressing concerns that have recently arisen in the industry.
Adams emphasized the need for thoughtful and transparent token releases. He stressed the importance of creating a token that issuers can be proud of, to avoid criticism in the crypto community. This aligns with feedback from EigenLayer’s recent distribution, where they issued additional EIGEN tokens to address user concerns.
Adams’ Perspective on Ethical Token Distributions
Adams offers his perspective on good token distributions, emphasizing the importance of ethical practices. He highlights that tokens should possess real value, not just serve as arbitrary points.
It’s crucial, he argues, to avoid “farming the farmers” by creating ambiguity around token distribution for mere growth. Clear communication is key, and details should only be shared when fully ready.
Also underscores the need for real liquidity from day one, criticizing low float tokens as harmful and advocating for genuine price discovery on decentralized exchanges. He cautions against exploiting investor biases through high token supplies and encourages generous token distribution, asserting that if the community doesn’t deserve a significant portion, it’s better not to release a token.
Marketing the token price is discouraged, as this often signals an intent to pursue quick wealth rather than build real value. Instead, Adams suggests keeping the process straightforward and making thoughtful decisions that creators can proudly defend.
Overall, Adams’ insights provided a clear view on ethical practices in the crypto industry, advocating for transparency and fairness in token distribution.
