Hayden Adams, the founder and CEO of Uniswap, has shared his perspective on ethical considerations for the effective distribution of tokens amidst concerns about transparency and fairness in EigenLayer’s token distribution. In a recent post, Adams clarified that he was specifically discussing tokens, not points, and criticized the practice of creating hype and ambiguity during token distribution to artificially boost engagement metrics.
Adams strongly discouraged public speculation about future developments and expressed his disapproval of low float tokens, which he views as malicious and a personal annoyance. He believes that projects can distribute tokens effectively without relying on exchanges or market makers. Instead, he advocates for open token distribution to enable genuine price discovery on decentralized exchanges.
Furthermore, Adams criticized the strategy of artificially inflating token supply to take advantage of people’s unit bias, stating that it is unnecessary. He also advised token distributors to avoid being overly conservative and encouraged them to make a significant portion of their tokens available for distribution.
In terms of token distribution, Adams cautioned against inadequate distribution practices and stressed the importance of not revealing token prices during or before distribution. He warned that any attempts to do so, whether through influencers or marketing firms, would raise suspicions about the project’s intentions. Adams believes that this approach indicates a focus on quick profits rather than building real value. He urged token issuers and distributors to maintain a transparent and straightforward distribution process to address concerns raised by recent industry rug pulls.
Lastly, Adams emphasized the need for token issuers to be thoughtful and transparent about their projects. He stressed the importance of releasing a token that they can be proud of and stand behind to avoid ridicule within the crypto community.
EigenLayer, an Ethereum restaking protocol, recently distributed an additional 28 million EIGEN tokens to over 280,000 wallets following its initial airdrop. This distribution was prompted by user concerns over the program’s restrictions.
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