Definition ∞ A fair launch model distributes new cryptocurrency tokens without pre-sales, early investor allocations, or preferential access. In this distribution method, all participants have an equal opportunity to acquire tokens from the outset, typically through mining, staking, or liquidity provision. It aims to prevent large initial holdings by venture capitalists or insiders, promoting a more equitable and decentralized ownership structure. This approach often results in a community-driven project from its inception.
Context ∞ The fair launch model remains a significant philosophical and practical debate within the cryptocurrency community, particularly in contrast to models involving extensive private sales. Proponents emphasize its alignment with decentralization principles and its potential to reduce pump-and-dump schemes. Critics sometimes point to challenges in initial funding, marketing, and developer compensation without pre-sales. The ongoing discourse centers on achieving sustainable project development while upholding the ethos of equitable distribution.
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