Hayden Adams, the founder and CEO of Uniswap, has provided his perspective on ethical considerations for the effective distribution of tokens in response to concerns about the transparency and fairness of token distribution on EigenLayer.
In a recent post, Adams clarified that he was specifically discussing tokens and not points. He criticized the practice of generating hype and creating ambiguity during token distribution in order to artificially boost engagement metrics.
Adams warned against engaging in public speculation about future developments.
Source:
Hayden Adams
Users who felt excluded from the recently announced EigenLayer airdrop expressed their dissatisfaction with the restaking protocol’s announcement on Monday. They highlighted concerns about its nontransferable token structure, restrictive geographical limitations, and a seemingly short snapshot period.
The executive from Uniswap strongly disapproved of low float tokens, considering them to be malicious and his biggest annoyance. He believes that projects can effectively distribute tokens without relying on exchanges or market makers. Adams believes that the ideal approach is to openly distribute tokens, allowing for genuine price discovery on decentralized exchanges.
Adams also criticized the practice of creating an excessively high token supply to take advantage of people’s unit bias, stating that such an approach is unnecessary. Additionally, he advised token distributors against being too conservative and encouraged them to make a significant portion of their tokens available for distribution.
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Adams cautioned against inadequate token distribution and emphasized the importance of not revealing token prices during or before distribution. He stated that any attempt to do so, whether through influencers or marketing firms, would raise suspicions about the project’s intentions. According to Adams, this approach suggests that the issuer is prioritizing quick wealth over building real value. Token issuers and distributors are urged to maintain a transparent distribution process, taking into account recent industry rug pulls that have raised concerns.
Finally, the Uniswap executive urged token issuers to be thoughtful and transparent about their projects. He emphasized the importance of releasing a token that they can be proud of and stand behind to avoid ridicule within the crypto community.
EigenLayer, an Ethereum restaking protocol, distributed an additional 28 million EIGEN tokens to over 280,000 wallets following its initial airdrop, which was prompted by user concerns over the program’s restrictions.
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