Asset Distribution

Definition ∞ Asset distribution refers to how digital assets are allocated among participants. This process details the initial and subsequent allocation of tokens, cryptocurrencies, or other digital property within a network or project. It includes mechanisms like airdrops, public sales, mining rewards, and pre-sales. Understanding asset distribution is vital for assessing the decentralization, liquidity, and potential market manipulation risks of a digital asset.
Context ∞ Discussions surrounding asset distribution frequently appear in crypto news, particularly concerning new token launches and the concentration of holdings among early investors or project teams. Regulatory bodies scrutinize distribution methods to determine if an asset qualifies as a security. The equitable distribution of assets remains a significant consideration for community governance and the long-term health of decentralized protocols.