Token aidrops beget both resulted in a crypto community rallying in the abet of a project, or backlash in the form of social media outrage and mass boycotting.

The Eigen Foundation controversy is a contemporary example of a token distribution notion gone unpleasant, with the Foundation at final opting to allocate $1,000 extra EIGEN tokens to customers in accordance with criticism from the community. Closing month, blockchain interoperability platform Wormhole became once the point of curiosity of angry customers, with rather a lot of complaining that the distribution mechanism didn’t adequately reward “proper customers.”

Uniswap founder Hayden Adams shared his address what an proper token distribution must stare like in a put up on X, noting that his thoughts weren’t aimed at any project in direct.

No longer aimed at any particular project, but beget seen a ton of discourse no longer too lengthy previously on the topic so figured I’d share my address valid token distributions:

1) tokens, no longer aspects

2) don’t farm the farmers – teasing and growing ambiguity round a token distribution to develop your numbers…

— hayden.eth 🦄 (@haydenzadams) Might per chance per chance also fair 4, 2024

“don’t be stingy – give a valuable quantity away. While you happen to don’t judge the community deserves a valuable quantity, don’t originate a token,” Adams mentioned, in surely one of his seven aspects on the direct.

He authorized that proper liquidity must be created on the first day of distribution, so that tag discovery for the token can happen on decentralized exchanges (DEXes). In his peek, folks must think the fully diluted valuation (FDV) of a crypto project, comparatively than market capitalization.

Adams also suggested against “farming the farmers,” by growing ambiguity round a token distribution to develop numbers. Airdrop farmers are customers that enhance their interactions with a protocol via multiple addresses to spice up the alternative of tokens they receive from an airdrop. These customers are in total criticized for distorting the organic distribution of tokens to valid customers.

“While you happen to don’t know yet, don’t speculate publicly. While you happen to enact know but are seemingly to be no longer prepared to share stout principal aspects, don’t tease them out. Factual share proper principal aspects when prepared,” mentioned Adams, also advising against growing an absurdly excessive token supply to farm folks with unit bias.

“Don’t conclude up in a design where you’re battling or apologizing to crypto twitter. Fabricate something you’re cheerful with and stand in the abet of it,” he concluded.