By Guest Writer •
Published: 31 May 2023 • 13:00
The allocation of tokens within a project’s ecosystem is a critical component that drives its success. This article delves into the token allocation strategies of the top three crypto projects: Caged Beasts (BEAST), Cardano (ADA), and Solana (SOL). And the role of Caged Beasts’ marketing wallet in shaping its future trajectory.
Understanding the technology and strategies of a coin will reinforce the investor’s confidence and is a crucial aspect of investing that differentiates newbies from seasoned investors.
Tokenomics embodies the economic rules that govern the operation and distribution of a token within a blockchain network. It’s crucial because it establishes the token’s utility, informs potential investors about its supply and distribution, and ensures sustainable incentives for early adopters. It can enhance a token’s long-term growth and solidify investor trust.
Examples of successful tokenomics models are reflections, used in numerous projects, and transaction taxes, a popular mechanism for driving the token economy. These models integrate elements from multiple disciplines, including mathematics, psychology, macroeconomics, and game theory.
Solana, a well-established decentralised blockchain network, uses a proof-of-history consensus mechanism that allows it to process over 10,000 transactions per second. Its token, SOL, was distributed over the course of five funding rounds, with the majority being private sales.
According to CoinGecko, Solana’s token allocation includes 15.86% to Seed Sale, 12.63% to Founding Sale, and 5.07% to Validator Sale. Furthermore, 48% of Solana’s initial token allocation reportedly went towards insiders, demonstrating the project’s confidence in its own future success.
Cardano, launched after an initial coin offering in 2017, organized by IOHK, offers another approach to token allocation. According to CoinGecko, 57.60% of ADA (Cardano’s native token) is allocated to ICO, 11.50% to the Team, and 30.90% to Staking Rewards. In the genesis block distribution, nearly 26 billion ADA were sold to investors, emphasising the project’s focus on decentralisation and community involvement.
Caged Beasts (BEASTS), a newcomer to the crypto scene, has devised an innovative token allocation system that plays a crucial role in its growth strategy. Of all the funds raised by Caged Beasts, 75% are locked for liquidity, ensuring stability, and market efficiency. However, it’s the allocation of 25% of the raised funds for marketing that truly sets Caged Beasts apart.
This significant investment in marketing aims to catapult Caged Beasts into the limelight and foster robust community engagement. Notably, Caged Beasts plans to engage its community through various social media competitions, giveaways, and other events. These community-centric strategies, paired with its intriguing storyline, are set to captivate and grow its community.
Caged Beasts also introduce a unique referral system, which provides a mutual incentive for both the referrer and the referee. This system, which instantly rewards the referrer with 20% of the referee’s deposit and grants the referee 20% more BEAST tokens, is a ground-breaking presale tactic that holds the potential to build a substantial community.
The token allocation of Caged Beasts brings a refreshing approach to the crypto space, particularly with its emphasis on marketing and community engagement. Unlike Cardano and Solana, which utilised conventional token allocation strategies through ICOs and private sales, Caged Beasts allocates a significant 25% of all funds raised to marketing, aiming to drive brand awareness and propel its presence within the crypto community.
The remaining 75% is locked for liquidity, promoting market stability. In contrast, Cardano allocated a considerable 57.60% of ADA tokens to its ICO, 11.50% to its team, and 30.90% for staking rewards. Solana, on the other hand, employed a diverse strategy with various funding rounds, allocating 15.86% to Seed Sale, 12.63% to Founding Sale, and 5.07% to Validator Sale. This comparison highlights the different pathways these projects have taken, with Caged Beasts opting for a strong focus on marketing and community engagement, setting a new trend in token allocation strategies.
The token allocation strategies of Caged Beasts, Solana, and Cardano each provide unique advantages and opportunities for their respective projects. Caged Beasts, with its heavy emphasis on marketing and innovative referral system, promises dynamic growth and community engagement. Solana and Cardano, with their distinct approaches to token distribution, continue to consolidate their strong standing in the crypto space. As these projects evolve, the strategic allocation of tokens will remain a key driver of success.
Find out more about Caged Beasts (BEASTS):
WARNING: The investment in crypto assets is not regulated, it may not be suitable for retail investors and the total amount invested could be lost
AVISO IMPORTANTE: La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y perderse la totalidad del importe invertido
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