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Fair Allocation

Definition

Fair allocation refers to the equitable distribution of resources, opportunities, or assets among participants in a system. In the context of digital assets, this principle applies to token distributions, NFT mints, or access to decentralized finance protocols, seeking to prevent undue advantage for certain actors. It aims to counteract issues like front-running, sybil attacks, or whale manipulation, ensuring that all eligible participants have a reasonable opportunity to acquire assets or benefit from a system. Achieving fair allocation often involves sophisticated design choices in smart contracts and protocol mechanisms.