Hayden Adams, the founder and CEO of Uniswap, has provided his perspective on the ethical considerations surrounding token distribution on EigenLayer. In a recent post, Adams clarified that he was specifically addressing tokens, not points, and expressed his disapproval of practices that inflate engagement metrics through hype and ambiguity during distribution. He also cautioned against public speculation about future developments.
Adams strongly criticized low float tokens, which he considers malicious and one of his biggest pet peeves. He believes that tokens can be effectively distributed without relying on exchanges or market makers. He advocates for an open distribution approach that enables genuine price discovery on decentralized exchanges.
Furthermore, Adams denounced the creation of an excessively high token supply to exploit people’s unit bias, stating that it is unnecessary. He advised token distributors to make a substantial portion of their tokens available for distribution and cautioned against being overly conservative.
Adams stressed the importance of proper token distribution, emphasizing that token prices should not be revealed during or before distribution. Any attempt to do so, whether through influencers or marketing firms, would raise suspicions about the project’s intentions. He believes that this approach prioritizes quick wealth over building real value. Token issuers and distributors are encouraged to maintain a transparent and straightforward distribution process to address concerns about rug pulls in the industry.
Lastly, Adams urged token issuers to be thoughtful and transparent about their projects. He emphasized the need for issuers to release a token they can be proud of and stand behind, in order 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.
Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)