2024-05-06
Hayden Adams, the creator of the Uniswap decentralized exchange (DEX) platform, has shared his perspective on the ethical distribution of tokens, presenting eight key principles.
Amid recent concerns within the community regarding transparency in token distribution, particularly in relation to EigenLayer's distribution methods, which have been criticized as fraudulent, Adams emphasizes the significance of considering tokens as more than just points.
He strongly condemns the practice of "farming the farmers," where projects artificially generate excitement around token distribution to enhance user engagement. Adams advises against speculating publicly without concrete information and suggests withholding details until they can be fully disclosed.
Furthermore, Adams expresses his disapproval of "low float" tokens, which he believes are manipulative. He argues that projects should distribute tokens widely enough for decentralized exchanges to determine their true value, enabling genuine price discovery from the start.
Adams also criticizes the unethical tactic of exploiting unit bias through excessively high token supplies. Instead, he advocates for generosity in distribution, urging project leaders not to be stingy.
He recommends allocating a significant portion of tokens to the community that supports the project.
In addition, Adams takes a firm stance against marketing token prices, asserting that projects focused solely on price hype prioritize quick profits over long-term value creation.
Moreover, he emphasizes the importance of simplicity in the distribution process to avoid the complexities that have been associated with scams in the past.
Ultimately, Adams emphasizes the importance of integrity, encouraging project leaders to create a token distribution model that they can be proud of and wholeheartedly support.
