Binance Founder Explores New Standards For Tokenomics

Under CZ's proposal, only 10% of tokens will be unlocked for sale with the remaining 90% remaining untouched.

Binance founder Changpeng Zhao (CZ) is known for his out-of-the-box thinking, and he has once again come up with a crazy idea that could revolutionize the way tokens are issued and sold.

In a new blog post, CZ proposes a new standard for token issuance that would be governed by smart contracts and designed to prevent the market from being flooded with new tokens.

Under CZ's proposal, only 10% of tokens will be unlocked for sale, while the remaining 90% will remain untouched. The proceeds for the 10% will be used for development costs, marketing, salaries, and community building.

However, before future token unlocks can occur, several conditions must be met. Issuers will need to wait for six months after the previous unlock and the token price must have doubled its previous unlock price for over 30 consecutive days.

Token issuers will also be able to unlock a maximum of 5% of the total holdings each time, although project teams can reduce and delay the unlock sizes.

"If they don't want to sell more, they don't have to," said CZ. "But the maximum they can sell each time is 5%, and then they have to wait for at least another 6 months AND the price to double again."

This idea is interesting because it could help to incentivize long-term builds and prevent token rug pulls.

It could also help to stabilize token prices and reduce volatility.

However, it is a crazy idea, and it is not clear whether it would actually work in practice.

It will be interesting to see if any projects decide to adopt CZ's proposal.

Here are some of the pros and cons of CZ's proposal:

**Pros**

* It would prevent early dumping of tokens, which could help to stabilize token prices.

* It would give project teams the time and incentive to build their projects and grow their communities.

* It would be a transparent and efficient way to manage token unlocks.

**Cons**

* It is a complicated proposal that would require careful planning and execution.

* It is not clear whether there would be enough demand for all of the tokens that would be unlocked.

* It is possible that the proposal could be abused by malicious actors.

Overall, CZ's proposal is an interesting and thought-provoking idea that could have some merit. However, it is a "crazy idea" for a reason, and it is not clear whether it would actually work in practice. Only time will tell if any projects decide to adopt CZ's proposal.