Uniswap founder shares his two cents on good token distributions

Hayden Adams, founder of Uniswap protocol, shared his opinion on what characterizes a good distribution or launch of a token. In a recent post on Platform

The founder of Uniswap expresses his opinion on the good distribution of tokens

Adams started his performance well token distributions stating that projects should award “tokens, not points” to the community. This phrase implies that participants should receive real tokens that have value within a particular ecosystem or on a network, rather than receiving points that may have limited utility.

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Second, Adams cautioned against creating ambiguity or being vague about a symbolic distribution to increase the number of participants or to “cultivate farmers.” According to the founder of Uniswap, good token distribution practice involves sharing real details when ready.

Additionally, Adams criticized “low-float tokens,” calling them harmful. The leading DeFi figure urged project teams to ensure there are sufficient tokens in circulation to prevent manipulation and enable genuine price discovery.

Adams also discouraged the rising price of a token and how it will skyrocket before launch. The founder believes that hiring an influencer or marketing firm to promote the value of a token is merely a get-rich-quick scheme rather than a genuine attempt to create real value.

Furthermore, the Founder of Uniswap highlighted the importance of free token airdrops during token distribution. “Don’t be stingy: give a significant sum. If you don’t think the community deserves a significant sum, don’t issue a token,” Adams said in his post.

Ultimately, Adams advised new crypto projects to take care and thoughtfulness in their decision making to avoid making mistakes that could put them at odds with the crypto community. “Create something you are proud of and stand behind it,” the Uniswap founder added.

A blow to Friend.tech and its FRIEND?

At the beginning of his post, the founder of Uniswap clearly stated that the opinion is not aimed at any specific project. However, the moment is interesting, especially after the social media platform Friend.tech “Failed” Token Airdrop.

Friday 3 May, Friend.tech was air-launched its new FRIEND tokens to users in conjunction with the launch of version 2 of the protocol. While the token’s value quickly rose to $167 after launch, FRIEND’s price plummeted below $2 within hours.

Analysts have identified liquidity issues and a mass sell-off as the main reasons behind FRIEND’s decline and ultimately the token’s ineffective launch. Additionally, many users complained about how challenging it was to request the token airdrop, as technical glitches reportedly frustrated the process.

UNI price stalls at $7.5 on the daily timeframe | Source: UNIUSDT chart on TradingView

Featured image from Shutterstock, chart from TradingView

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