Token Distribution Models Explained: How Crypto Projects Allocate Supply

When you buy a crypto token, you're not just buying a digital asset—you're stepping into a system designed by its token distribution model, the rulebook that decides who gets tokens, how many, and when they can be sold. Also known as tokenomics, this system shapes everything from early investor profits to long-term price stability. A poorly designed model can crash a token before it even launches. A smart one builds trust, rewards early supporters, and keeps supply from flooding the market.

Most projects use a mix of token vesting, a schedule that slowly releases tokens to teams, investors, and partners over time, and token lockup, a period where tokens are locked and cannot be traded. For example, team tokens often vest over 2–4 years with a 6–12 month cliff—meaning nothing unlocks until the first year ends. This prevents insiders from dumping tokens right after launch. Public sales might have shorter lockups, while airdrops to early users often have no lockup at all. The balance matters: too much supply released too fast? Price crashes. Too little? Community gets angry. Projects like token distribution models that give 50%+ to investors without vesting usually fail. Those that give 15–25% to teams with long vesting, 20–30% to community, and the rest to treasury and liquidity tend to last longer.

Look at the posts below. You’ll find real-world cases: some tokens with no real distribution plan (like MARMOT or MATE), others with suspicious airdrops (VikingsChain, TopGoal), and a few that got it right by aligning incentives. You’ll see how Switzerland treats crypto as wealth, how China bans ownership, and how exchanges like MDEX collapsed because their token supply wasn’t controlled. This isn’t theory—it’s what separates survival from death in crypto. Whether you’re buying, investing, or just trying to avoid scams, understanding who holds the tokens and when they can sell is the first step to making smarter moves.