Former Binance CEO Changpeng Zhao proposed a new tokenomics model aimed at addressing market flooding issues in the crypto sector.
Conditional Token Unlocks
The idea involves unlocking tokens only after specific time and price conditions are met. Initially, only 10% of the tokens will be available for sale, with the remaining 90% locked. Future unlocks can occur at least six months apart if the new price sustains at twice the previous unlock price for over 30 days. Zhao also noted that no more than 5% of the total token supply can be released at each stage.
CZ's Clarifications
Zhao stated that he has no intentions of launching a new token, highlighting that the model is not a universal fix. His proposal comes amid growing concerns about fraudulent schemes in the crypto market.
Proposal Context
Zhao's initiative comes in the wake of the LIBRA token collapse, where its price surged to almost $5 before crashing, losing over $4.4 billion in market capitalization. He has previously voiced his displeasure over market manipulation and pledged support for victims of fraudulent schemes.
The tokenomics model proposed by Zhao could be a step towards solving price crash issues and promoting sustainable development of crypto projects.
