Solana Labs co-founder explains early project token issuance logic: combining staking and fair launch is superior to VC funding

Jinse Finance reported that Solana Labs co-founder toly stated on the X platform that combining staking with fair issuance is superior to VC financing. If effectively implemented, the optimal capital formation method for early-stage startups may include: 1) rewarding long-term holders through staking mechanisms; 2) releasing no less than 20% of tokens on the day of TGE; 3) minimizing the involvement of investors, and if introduced, unlocking 100% of their tokens uniformly one year after TGE. In addition, team and investor tokens should not be unlocked at TGE. The distribution method should be airdrops to core users or fundraising through fair auctions. Even though a concentrated unlock after one year may seem “high pressure,” the market can effectively absorb information that is known in advance. The one-year lock-up period will prompt investors who wish to exit in the secondary market to fully compete with those optimistic about the project and willing to increase their positions, while the primary market price will serve as an anchor benchmark. The staking mechanism can incentivize long-term holders, similar to how long-term capital receives higher returns in early rounds.