Token Distribution Model

Definition ∞ A token distribution model defines the method and schedule by which a cryptocurrency project’s native tokens are allocated to various stakeholders. This includes initial sales, team allocations, ecosystem funds, and rewards for network participants. The model significantly influences decentralization and long-term token value. It is a fundamental aspect of a project’s economic design.
Context ∞ News analysis often scrutinizes a project’s token distribution model to assess its fairness, potential for centralization, and future supply dynamics. A transparent and equitable distribution can foster community support and network security. Understanding these models is essential for evaluating the economic viability of new digital assets. This element is crucial for project longevity and investor confidence.