Definition ∞ A token distribution plan outlines how a new cryptocurrency or digital token will be allocated among various stakeholders, including founders, developers, investors, and the wider community. This plan specifies the total supply, vesting schedules, and methods of distribution, such as initial coin offerings or airdrops. It significantly influences a token’s initial market dynamics.
Context ∞ Token distribution plans are a central topic in crypto news, particularly during new project launches or funding rounds, as they affect decentralization and potential price stability. The debate often involves balancing early investor incentives with broad community participation and avoiding excessive concentration of ownership. Regulatory bodies are increasingly scrutinizing these plans for fairness and compliance.
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