Binance Founder Unveils Crazy Ideas For Token Issuance

Binance founder and former CEO Changpeng ‘CZ’ Zhao took to the X social media platform to share what he called some “crazy” ideas on token issuance.

Per the post, he highlighted a new potential tokenomics that can make for good discussion among innovators in Web3.

Despite his bold thoughts, he clarified that he had no plans to issue a token. That is analysis was only for discussion.

Analysis of the CZ Token Idea

CZ pointed out that 10% of the tokens in his new model are unlocked and sold on the open market.

Thereafter, proceeds from the sales go to the project team. These funds may then be used by the team to build out the product.

Specifically, the funds could be directed toward developing the platform, marketing, or paying salaries.

Next, he listed a few criteria that future unlock must meet. The first on the list is that every unlock can only come six months after the previous one.

Another condition for a new unlock is that the token price sustains above 2x of the previous unlock price for more than 30 days immediately before the unlock.

His final condition is that up to 5% of the tokens maximum is issued each time.

For more context, he described the model he had in mind.

“If the TGE was in Jan with a price of $1, by June, if the token price is still less than $2, no more tokens can be unlocked. Let’s say the token’s price was above $2 from July 4 to Aug 3, then on Aug 3, 5% more tokens can be unlocked into circulation,” CZ explained, adding,

“Say the price is $3 on Aug 3. The next earliest unlock possible is March 3 next year, and only if the price is above $6 for longer than 30 days.”

Binance Founder Emphasizes Need for Change in the Market

While CZ’s statements may not directly refer to any project, they underscore the need for change in the crypto market, especially in token issuance.

This token model proposal comes amid a growing rug pull in the market.

By following these tokenomics, token issuers can avoid the challenge of new tokens flooding the market when prices are low. It also incentivizes the project team to build for the long term, per CZ’s X post.

Though not definite, the Binance founder is hopeful that innovators who decide to replicate his ambitious model for token issuance may record strong support from the community.

Is CZ Planning to Launch a New Token?

Since his release from jail, the former Binance CEO has focused on other businesses, leaving the running of the top cryptocurrency exchange to Richard Teng.

Zhao has reinforced his dedication to putting money into blockchain and decentralized technologies.

In his post, he made it quite clear that he was not issuing any token, however, pundits say this does not rule out the possibility in the future.

For now, he focuses on Giggle Academy, the educational institution he established before going to prison for four months.

Here, the Binance founder has rolled out a gamified learning platform that targets people in grades 1 to 12.

This program intends to unlock superb educational opportunities for everyone, regardless of location or income level.

CZ is still a loud voice in the crypto industry, particularly advocating for Bitcoin (BTC), amongst other digital assets.