CZ Proposes New Model: Price-Triggered Token Unlocks to Prevent Market Dumping
Changpeng Zhao (CZ), the former CEO of Binance, has proposed a new token distribution model designed to prevent market dumping and support long-term growth. The model involves only releasing 10% of a token’s supply at launch, with the remaining 90% locked under strict conditions. Tokens are only unlocked when the price performs well, exceeding twice its last unlock value for over 30 days, with a minimum six-month interval between unlocks, limiting each release to 5% of the total supply. Although CZ is not launching a new coin under this model, it aims to address concerns over market manipulation and pump-and-dump schemes. This proposal demonstrates CZ’s ongoing commitment to market stability and protecting investors.
Neutral
The proposed model by CZ introduces measures to prevent market manipulation and promote long-term stability, which could initially lead to increased trust among investors and developers. However, as it is still a proposal without implementation, its immediate effect on the market remains neutral. Long-term, if adopted widely, it could shift market dynamics towards more sustainable growth, reducing instances of pump-and-dump schemes.