An overview of Capx Chain architecture

Dear Future Token Communities,

Token distribution is a critical aspect of any token-based project. The success of a project relies heavily on its ability to effectively distribute tokens among its users, ensuring a diverse and robust ecosystem. A well-executed token distribution strategy combined with a strong community can be the cornerstone of a successful blockchain project. In this article, we'll explore how these two factors complement each other, empowering projects to flourish and achieve their goals.

In the last two parts of our blog series we covered the fundamentals of IOU tokens - IOU Tokens: Skin in the game incentives & their different applications - IOU Tokens: Unlocking potential of pre-launch incentives. But, before we dive into the project-specific use cases and implementation strategies for IOU tokens, let’s do a quick recap.

Some notable applications of IOU Tokens are - Accelerating Token Distribution, Building a Strong Community, Maximizing Product Growth...

Why do we do - what we do? That’s an interesting place to start when discussing incentive design, human motivators, behaviours and what drives humans to act a certain way when an incentive is introduced in the system.

The surge of institutional capital entering the crypto realm has led to confusion among investors, as they frequently confuse tokens with equities. Despite their similar trading patterns, tokens and equities differ fundamentally in how they accumulate value. For instance, when Elon Musk purchased Twitter, a publicly traded company, its value remained at $50 billion. In contrast, if Musk were to buy 100% of the Bitcoin supply, its value would drop to zero. A token's utility by itself does not ensure its success; it must achieve a certain level of distribution for its tokenomics to function effectively. Conventional token launch models prioritize price and liquidity over distribution, resulting in a prosperous first month of trading before a gradual decline. Capx aims to revolutionize token launch strategies by addressing the existing models' limitations.

Capx is designed to evolve through three distinct stages, each focused on addressing a different aspect of the Web3 ecosystem. By progressing through these stages, Capx aims to foster adoption, provide valuable insights, and create a liquid market for token projects and investors.

The emergence of blockchain technology and the growth of digital assets have revolutionised the investment landscape, with venture capital (VC) funds increasingly participating in the early stages of token-based projects. However, the current practice of token distribution and unlocking mechanisms may not be optimal for project sustainability and community growth. This thesis proposes the creation of secondary markets for unvested tokens as a means to enhance token distribution, promote market stability, and provide alternative exit options for early-stage Investors.