Changpeng Zhao, or CZ as the crypto community knows him, is cooking up a fresh new idea to tackle one of the crypto world's trickiest problems: market flooding! Imagine tokens only dropping into the market when the stars (and prices) align just right. Sounds like something out of a crypto fairy tale, doesn’t it?
Here's the scoop: CZ, the former head honcho of Binance, has put forward a zesty new tokenomics model. It's all about timing and price, baby! Picture this: only a tiny 10% of tokens are initially set free, while the rest chill on the sidelines. The money from these tokens goes into fueling the project—think development, marketing, salaries, and spreading the crypto love.
But wait, there's more! Future token releases have to jump through some hoops. They can't just happen willy-nilly. Each release needs to be at least six months apart, and here's the kicker—the price has to double and hold that level for over a month before another batch of tokens can hit the scene. It's like waiting for the perfect wave to surf!
To break it down with a juicy example: Let's say you launch a token in January at a buck. No additional tokens can be released until June, and only if the price has been sitting pretty at $2 for at least 30 days. If by August 3, the price hits $3, the next release can't happen until March 3 of the next year, and only if the price has reached a whopping $6.
This model keeps the market from getting flooded with tokens when prices are low and encourages teams to keep their eyes on the prize—long-term growth. CZ is quick to clarify, though, that he's not launching a new coin himself. He knows this model isn't a magic bullet for every project out there.
The proposal comes on the heels of growing concerns over sneaky pump-and-dump schemes. Remember LIBRA's wild rollercoaster ride? It shot up to nearly $5, then crashed down to pennies, wiping out billions in value. Ouch!
CZ has been vocal about his disdain for market manipulation and has even gone as far as donating tokens to help victims of fraudulent schemes. It's all about making the crypto world a safer place for everyone. Keep your eyes peeled because this could be the start of something big in the crypto universe!
