Binance CEO CZ Proposes New Token Model for Project Success

Binance founder and CEO Changpeng Zhao (CZ) has expressed his interest in supporting projects that adopt a new token model, as long as they are led by visionary founders with a strong sense of mission and trustworthiness. In a recent interview, cz discussed his previously conceived new tokenomics model, which involves initially unlocking and selling 10% of the tokens on the market, with subsequent unlocks subject to certain conditions.

CZ emphasized that a new tokenomics model alone cannot guarantee the success of a project. He stressed the importance of having a product, community, and revenue, as well as a trustworthy founder with a clear mission. The new tokenomics model, according to CZ, has some advantages compared to the fixed-time unlock currently prevalent in the market. However, he cautioned that any model can be manipulated, and projects may still fail at any stage.

CZ's new token model suggests that initially, 10% of the tokens are unlocked and sold on the market, with the proceeds used for project team product/platform development, marketing, salaries, and other expenses. Subsequent unlocks must meet several conditions, including a minimum of 6 months since the last unlock, the token price remaining at least twice as high as the last unlock price for the 30 days preceding the unlock, and a maximum of 5% of the tokens being unlocked each time.

Ask Aime: "Understanding Binance's New Token Model"

CZ clarified that there are currently no plans to issue new tokens using this model, and it is merely an idea for discussion. However, he believes that if this idea gains traction, some excellent founders may choose to give it a try. Binance, as the world's largest cryptocurrency exchange, may consider supporting projects that adopt this new token model, provided they meet the criteria of having a strong sense of mission and trustworthiness.