In just a few months, “NFT” has practically become a household term in 2021. Trading volume surged past $10.7b in Q3. Visa bought a CryptoPunk for $150k. Quentin Tarantino announced he was auctioning never-before-seen scenes of Pulp Fiction as NFTs. Taco Bell, Burger King, McDonald’s, and Pizza Hut minted their own NFTs.

Since the summer of 2020, the DeFi ecosystem has been experimenting with progressive decentralization – that is, the process by which founding teams of token-based startups relinquish control of their networks over time. Of course, crucial to that process is the distribution of tokens. In this piece, we’ll be diving into three of the key trends we are seeing in token distribution, with some actionable guidance for early stage teams.   

In just a few months, “NFT” has practically become a household term in 2021. Trading volume surged past $10.7b in Q3. Visa bought a CryptoPunk for $150k. Quentin Tarantino announced he was auctioning never-before-seen scenes of Pulp Fiction as NFTs. Taco Bell, Burger King, McDonald’s, and Pizza Hut minted their own NFTs.

Decentralized Autonomous Organizations (DAOs) are communities of tokenholders dedicated to the long-term success of a protocol through a shared mission based upon codified rules on the blockchain. Unlike traditional companies, DAOs are transparent, permissionless, and global, reflecting broader qualities of blockchain technology itself.