Binance's CZ Proposes Novel Tokenomics Model to Minimize Sell-offs

Binance founder Changpeng Zhao (CZ) has proposed a novel tokenomics model, clarifying that there are no immediate plans to issue new tokens. The model, outlined on CZ's social media, aims to address common issues in token issuance and unlocking schedules.

The proposed model involves initially unlocking and selling 10% of the tokens, with the proceeds earmarked for project team salaries, marketing, and product/platform development. Subsequent token unlocks are subject to three key conditions:

• At least six months must have passed since the last unlock.
• The token price must have remained above twice the price of the last unlock for the 30 days preceding the unlock.
• No more than 5% of the tokens can be unlocked at a time.

Additional rules include the project team's right to delay or reduce the unlock amount, or choose not to unlock tokens at all. However, the team cannot shorten the unlock time or increase the unlock percentage, as all tokens will be locked by a smart contract and held by a third-party custodian of the private keys.

The benefits of this model include reducing significant sell-offs at low prices, thereby minimizing investor losses, and incentivizing the project team to focus on long-term development, aligning token value growth with long-term goals.

CZ emphasized that this idea is currently just a proposal for discussion and that there are no immediate plans to issue a new token.