Original Authors: Xinwei, Ian
TL;DR
In the past few years, the blockchain industry has undergone earth-shaking changes, especially in the significant innovation in token issuance methods. From the initial simple ICO to complex DeFi structures, and now to today's Fair Launch and community-driven models, these changes have not only reshaped the pattern of asset distribution but also sparked widespread attention from market participants. Next, we will delve into several representative projects, each of which demonstrates the innovation and progress in this field with its unique token issuance method.
This article provides in-depth analysis of several key projects, from the retail-driven model of Inscription, to the incentive innovation of Blast, to the emphasis on fairness by ZKFair, to the innovative distribution method of Analysoor, and to Binance redefining token economics with Fair Mode. These projects not only showcase the diversity of the cryptocurrency ecosystem but also reflect the growing market demand for transparency and fairness.
MT Capital's Director of Investment, Ian, commented: "#BRC20, #Blast, #ZERO, #ZKFair, and other projects have experimented with a great innovative approach - fair distribution for everyone. They do not rely on platform coins or investors. The earliest participants have completed the project's investment, distribution, market promotion, and preaching. This is similar to the liquidity mining in DeFi Summer, where the project's own liquidity incentives have created prosperity for the entire chain. Fair distribution greatly enhances the enthusiasm of community participants, reaching unprecedented heights."
Inscription
The rise of Inscription, similar to the past DeFi Summer, revolves around the concept of Fair Launch. This concept was very popular during DeFi Summer, mainly referring to the project party not reserving any shares during the initial token distribution. For example, Yearn (YFI) founder Andre Cronje claimed that he did not pre-mine, reserve tokens, or notify internal personnel in advance, which greatly enhanced his reputation and brought huge TVL to Yearn.
However, as DeFi Summer gradually came to an end, the market witnessed the emergence of more and more projects, making the entire cryptocurrency ecosystem more mature. During this period, capital began to enter the market, initiating a VC-driven project launch mode. In this mode, projects with large financing amounts and high reputation of investment institutions are more likely to attract market attention. This also gave rise to some users who mainly rely on "rug pulling" for survival and ordinary retail investors who are eager for airdrops from star projects.
In this context, the emergence of Inscription brought about new changes. It is seen by some as "the world of retail investors" because all chips are completely minted by retail investors themselves. Although Inscription is criticized by some as having only meme coin attributes and lacking long-term practical application scenarios, it provides more opportunities for retail investors. With the birth of more and more Inscription projects and the end of the asset issuance stage, the Bitcoin ecosystem is expected to enter a new stage of application development.
https://geniidata.com/ordinals/index/brc20
Blast
Since its launch on November 21, Blast has quickly become the focus of the cryptocurrency market, demonstrating its innovation and attractiveness in the Layer2 network field.
Blast is a Layer2 network launched by Pacman, the founder of Blur. Based on Optimistic Rollups technology, Blast is compatible with Ethereum, providing convenient access for developers and dApps. The rapid growth of Blast's TVL and user base is quite remarkable, and Blast's TVL has now reached $1 billion.
In addition, Blast has completed a $20 million financing round with participation from Paradigm and Standard Crypto.
One of the main ways Blast attracts users and developers is through airdrops and incentive mechanisms. According to the plan, airdrops will be conducted in May 2024 to reward early members and developers. Users can earn points by depositing assets and inviting new users to join the Blast L2 network, and these points will directly affect the amount of airdrops they receive. This mechanism incentivizes user participation and promotion.
The core appeal of Blast lies in its combination of staking mining and additional rewards. By depositing funds into Blast and using Lido for staking on the Ethereum mainnet, users can not only earn staking rewards but also additional rewards from Blast. The fundamental purpose of this strategy is to increase TVL and attract more users to participate in order to obtain additional Blast rewards. Blast's success depends on its innovative Layer2 solution and incentive mechanisms that attract users and developers.
https://dune.com/0xramen/blast-stats
ZKFair
ZKFair (ZKF) is an innovative project based on Ethereum, focusing on establishing a fair and community-driven Layer2 network. As the first ZK-Rollup on Ethereum to utilize Polygon CDK and Celestia DA technology, ZKFair's core goal is to lower the high entry barriers for users in the current market environment. Many ZK-L2 projects in the market are VC-led, with high valuations, making it difficult for ordinary users to obtain substantial returns. These projects also encourage users to pay high transaction fees, but the token incentives are slow to distribute, which is not user-friendly.
ZKFair attempts to change this situation by creating a fair and community-driven network. This network is not only technologically advanced but also supported by Lumoz RaaS. The native token $ZKF of the project adopts a 100% fair launch, with no allocation reserved for investors, pre-bookers, or early miners. All tokens are planned to be airdropped to the community after the mainnet launch, with a total supply of 10 billion, of which 7.5 billion are used for gas fee airdrops, and the remaining 2.5 billion are for community users.
The notable aspect of ZKFair lies in its unique market positioning and distribution strategy. Market analysis generally favors its opening potential, expecting a potential increase of 5-10 times. By using the stablecoin USDC as gas, combined with a low market value and a novel chip distribution model, this project provides investors with an attractive story and a fair distribution mechanism. Regarding token acquisition, the rules stipulate that addresses that have interacted with platforms such as zkSync, Scroll, ZKSpace, Polygon EVM, and Linea within a specific time frame are eligible for airdrops. In addition, the project also specifies the detailed process and restriction rules for burning gas to obtain ZKF tokens, as well as strategies for quickly consuming gas through interaction with Dapps.
Analysoor
Analysoor is the first Meta Protocol on the Solana chain, introducing an innovative method for creating and distributing NFTs and tokens. Its core involves using block hash values as a random number generator, with each block selecting a winner, effectively countering the impact of bots in the $ZERO and Index ONE NFT minting process.
Analysoor's Fair Launch mechanism focuses on fairness and liquidity orientation, with no presale, whitelist, team allocation, or gas fees paid for front-running trades. This means that every participant starts on an equal footing, and differences in capital volume do not affect minting competition. The minting fees do not flow to the project team or miners but are used to increase liquidity, support the ecosystem, and the community.
Analysoor is building strong community consensus, and its value and potential are being increasingly recognized. Developers are also working to adopt more innovative methods to combat potential bot behavior, ensuring the long-term sustainability of fairness, with AI algorithms and machine learning playing a crucial role.
Compared to mainstream Launchpad projects on other public chains, Analysoor's current market value may be underestimated. Considering the lack of a leading Launchpad protocol in the Solana ecosystem, Analysoor has the potential to fill this role and achieve significant value growth in the future.
The demand for fairness and transparency in the market is growing, and the Fair Launch mechanism is becoming a trend. Especially on high-performance public chains like Solana, 2024 may be a year of explosive growth for Meta Protocols. As a pioneer of Fair Launch on Solana, Analysoor has significant potential and a strong vision, potentially evolving into a multi-functional Launchpad in the future.
Fair Mode
Binance's recent launch of the "Fair Mode" in the Launchpool represents a significant innovation in the token economic system. The core of this mode lies not only in the project itself but also in the rethinking of the token economic system, aiming to promote the long-term healthy development of projects. Fair Mode introduces a 27% long-term development fund, with these tokens not being consumable or tradable, not entering market circulation, but being used for staking and participating in the ecosystem to support the project's continuous growth. Additionally, the mode fairly distributes up to 21% of the tokens to retail investors in its initial circulation of 25%, including Binance launchpool and airdrops, increasing the community's influence on project decisions and inspiring their willingness to collaborate with the project team.
By increasing the initial circulation and reducing the future unlock amount, Fair Mode reduces selling pressure in the market, laying the foundation for the long-term stability of token value. At the same time, by reducing the token allocation for the team and investors, this mode reduces their ability to manipulate the market, helping to maintain the healthy value of the token. Binance's introduction of Fair Mode demonstrates its deep understanding of the industry and may lead to new trends in the innovation of the token economic system. This mode emphasizes the rationality and fairness of token distribution and is expected to be an important factor driving the overall development of blockchain technology and token economics.
https://twitter.com/heyibinance/status/1737813180141666324
Summary
In summary of this brief Insight, we can see the significant evolution and innovation in the token issuance methods in the blockchain industry. From the initial ICO to DeFi, and now to Fair Launch and community-driven models, these changes not only redefine the way assets are distributed but also attract widespread market attention. Specific projects such as Inscription, Blast, ZKFair, Analysoor, and Binance's Fair Mode, which continue to adopt the Fair Distribution model, have received positive feedback from the market and major players. These successful attempts not only showcase the diversity and maturity of the cryptocurrency ecosystem but also emphasize the importance of community participation and Fair Launch in the future development of blockchain technology. With the advancement of these innovations, the blockchain industry is expected to continue to play a significant role in the global finance and technology sectors and open up new possibilities for future development.
MT Capital
MT Capital, headquartered in Silicon Valley, is a native crypto fund focused on Web3 and related technologies. With a global team and diverse cultural backgrounds and perspectives, we have a deep understanding of the global market and can grasp investment opportunities in different regions. MT Capital's vision is to become a leading global blockchain investment company, focusing on supporting early-stage tech enterprises that can generate significant value. Since 2016, our investment portfolio covers various fields such as Infra, L1/L2, DeFi, NFT, GameFi, and more. We are not just investors but also the driving force behind founding teams.
Website: https://mt.capital/
Twitter: https://twitter.com/MTCapital_US
Medium: https://medium.com/@MTCapital_US
References
https://coinvoice.cn/articles/31134
https://share.foresight-news.com/article/detail/50365
https://www.panewslab.com/en_hk/articledetails/c6to2clm.html
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