PANews reported on October 27 that Andrew Kang, co-founder of Mechanism Capital, wrote on the X platform: “For a project, the best token economic model design does not require lock-up restrictions on investors and allows as many tokens as possible to circulate on the first day (except for team and treasury shares). A one-year lock-up period plus a three to four-year release period is a poor standard, which stems from a misunderstanding of the capital market and a lazy copy of previous projects.
In fact, the longer unlocking limit has little impact on investors’ investment after the TGE. Excellent investors will support the project regardless of whether the tokens have been unlocked. The industry’s standards need to change.”
