Distribution Model

Definition ∞ A distribution model defines the method and strategy by which a digital asset, product, or service is allocated and delivered to its target audience or users. In cryptocurrency, this refers to how tokens are initially released and subsequently spread among participants, such as through initial coin offerings, airdrops, mining rewards, or staking incentives. The chosen model significantly impacts decentralization, fairness, and the long-term viability of a project. It shapes the economic structure of a digital asset.
Context ∞ The design of a distribution model is a central consideration for new digital asset projects, directly influencing their perceived fairness and potential for broad adoption. Debates often arise regarding the concentration of tokens in early stages and the mechanisms to achieve wider distribution over time. News frequently covers new token launches and the effectiveness of their chosen distribution models in fostering community engagement and network security.