CZ Proposes Innovative Tokenomics Model for Sustainable Growth

• CZ’s token model promotes sustainable growth by restricting unlocks to price milestones, ensuring long-term investor confidence.
• The model prevents token flooding, incentivizing teams to build value while using smart contracts for transparency and security.
• CZ is shifting from founder to mentor, focusing on helping entrepreneurs rather than launching new crypto projects.

Changpeng Zhao (CZ), the former CEO of Binance, has introduced an innovative approach to token issuance. His idea focuses on sustainable market growth and long-term project development. The proposed model restricts token unlocks based on price performance and a fixed timeline. This ensures that new tokens enter circulation only under favorable conditions.

A Revolutionary Token Unlock Mechanism

CZ suggests an initial 10% token unlock at launch, with the proceeds supporting project development. Future unlocks require strict conditions. Firstly, each unlock must happen six months after the last one. Secondly, the token price must sustain double the previous unlock price for 30 consecutive days. Lastly, a maximum of 5% of tokens can be unlocked at each event.

For example, if a token launches at $1, the next unlock occurs only if the price remains above $2 for 30 days. If this happens in July, another 5% can be released. If the price then reaches $3 on August 3, the next possible unlock happens in March. However, the price must surpass $6 for 30 days before any release.

Long-Term Incentives for Project Teams

This model discourages teams from flooding the market with tokens when prices are low. Instead, it incentivizes long-term value creation. The unlock schedule remains fixed, preventing arbitrary changes by the team. Additionally, tokens remain locked in a smart contract controlled by a third party. This adds an extra layer of security and transparency.

Moreover, teams can delay or reduce the size of an unlock if they prefer. However, they cannot increase or shorten the unlock periods. This restriction prevents sudden market disruptions and aligns incentives with sustainable project growth.

CZ’s Shift from Founder to Mentor

As he introduces this idea, CZ makes it clear that he does not want to introduce a new token. Instead, he focuses on mentoring other crypto entrepreneurs. He has reiterated his commitment to supporting innovation rather than creating another exchange or blockchain project.

CZ’s proposal introduces a structured, performance-based tokenomics model. If adopted, it could reshape how projects manage token supply and investor confidence. The crypto community will now watch to see if any teams implement this innovative approach. If successful, it may become a new industry standard for responsible token issuance.