- Hayden Adams stressed the importance of treating tokens as more than mere points.
- He condemned the “farming the farmers” practice, where projects artificially hype token distribution to boost numbers.
- Adams’ commentary comes amid recent outrage over EigenLayer’s token distribution methods.
Hayden Adams, the founder of the Uniswap DEX platform, has outlined his perspective on ethical token distribution, offering eight key principles. Adams’ commentary comes amid recent community concerns over transparency in token distribution, particularly in light of issues raised with EigenLayer’s distribution methods, where industry pundits have labeled it a scam.
Adams began by highlighting the importance of treating tokens as more than mere points. Next, he condemned the practice of “farming the farmers,” where projects create hype around token distribution to boost user engagement artificially. He advised against making public speculations without concrete information and recommended withholding details until they could be fully disclosed.
Furthermore, the Uniswap founder expressed a distaste for “low float” tokens, which he considers manipulative. He argues that projects should enable genuine price discovery from day one by distributing tokens widely enough for decentralized exchanges to determine their actual value.
Fourthly, Adams criticized the tactic of exploiting unit bias through excessively high token supplies, labeling it as unethical. In parallel, he called for generosity in distribution. “Don’t be stingy,” the industry pundit said. Adams recommended that a significant portion of tokens be allocated to the community supporting the project.
Meanwhile, he took a firm stance against marketing token prices. He suggested that projects focusing on price hype are more interested in quick profits than creating lasting value.
Besides, the Uniswap founder urged simplicity in the distribution process to avoid the complexities that have led to scams in the past.
His parting message is one of integrity: create an effective token distribution model that project leaders can be proud of and support wholeheartedly.
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