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Uniswap discusses "Good Token Distribution" in Eight Principles: Avoid Airdrops, Stay Away from Low Liquidity Tokens

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Uniswap discusses "Good Token Distribution" in Eight Principles: Avoid Airdrops, Stay Away from Low Liquidity Tokens

Uniswap founder Hayden Adams commented on the popular trend of "tokens," although he did not specifically mention which projects, the connection to teams implementing a "point system" cannot be ignored. He also expressed his views on "good token distribution."

Eight Principles of "Good Token Distribution"

Uniswap founder Hayden Adams' ideas are as follows:

1. "Tokens, Not Points"

Hayden Adams may be emphasizing the distribution of real tokens, rather than points that may lack intrinsic value or blockchain verifiability.

2. "Don't Farm the Farmers"

Hayden Adams believes that token distribution should be transparent and honest, and vague or enticing implications may unfairly raise farmers' expectations.

3. Achieve Real Liquidity on Day One

Hayden Adams emphasizes avoiding artificially low supply to manipulate token prices. Instead, it is suggested to openly distribute a sufficient amount of tokens to achieve true price discovery on decentralized exchange DEX, considering Fully Diluted Valuation FDV rather than just market cap mcap.

Although some tokens have rapidly rising prices and high market caps, the actual circulating supply is very low, with chips quite concentrated. This could easily lead to a few manipulating prices without actual token utility.

Note: Price websites like CoinMarketCap provide information such as "circulating supply," "total supply," "max supply," "Fully Diluted Valuation."

4. Avoid Using High Token Supply to Exploit Unit Bias

This refers to using a high number of tokens to create a perception that the price is affordable or valuable, which may mislead less experienced investors. This is also a common method used in meme coins.

5. Token Distribution Should Be Generous

Hayden Adams believes that a large number of tokens should be distributed to the community, reflecting a commitment to community interests rather than just profit-seeking.

6. Do Not Market Token Prices

He warns against promoting tokens as opportunities for quick profits, as this could damage their legitimacy and long-term value.

7. Keep It Simple

This is a call for simplifying token economics, avoiding unnecessary complexity that may confuse or alienate potential users.

8. Thoughtful and Responsible Decision-Making

Hayden Adams encourages entrepreneurs to make defensible, well-thought-out decisions aimed at building something enduring and valuable, rather than just to please or manipulate public sentiment.

Overall, each point emphasizes ethical practices and sustainability. Focusing on real value, community interests, and transparent operations can help build trust and foster a healthier ecosystem.

Counterpoint: Advocating for Points System

Gnosis founder believes that the emergence of a points system is to address the second point, "Don't Farm the Farmers," isn't it?

While dforce founder Yang Mindao believes: "Points are just derivatives of tokens, used to create pre-market for tokens, just like setting the exercise price of call options with retracement, inventing points is to compete with existing enterprises like Uniswap, points can freely create new dimensions for speculation, thereby reducing the overall cost of TVL." This is a response to Uniswap, these new protocols also need a points system to compete and survive with existing protocols.

On-chain points give teams more flexibility and room for adjustments compared to token rewards