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Miles Jennings
@milesjennings
1/7 Tokens are an incredibly powerful digital primitive. They're also risky to bring to market. Here’s a quick breakdown of the token launch strategies and risk framework we’ve developed with founders for the @a16zcrypto Token Launch Playbook:
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Miles Jennings
@milesjennings
2/ Prior to picking a launch strategy, entrepreneurs should assess token launch risks and determine which risks to mitigate and which risks to take. These risks can be categorized as follows:
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Miles Jennings
@milesjennings
3/ Entrepreneurs can then design a token launch strategy that fits their desired risk profile. These token launch strategies can be categorized as follows:
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Miles Jennings
@milesjennings
4/ So, how do these strategies impact risk? Each strategy mitigates legal risk, but comes with tradeoffs. 🔹 "Decentralization" comes with increased operational risks. 🔹 "Exclude the U.S." and "Restrict Transferability" come with increased commercial risks.
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Miles Jennings
@milesjennings
5/ Entrepreneurs can mix and match these strategies, but must take care not to undermine their legal basis/validity. For example, launching a token in the U.S. and then advertising it heavily in the U.S. before it is sufficiently decentralized and available is a bad idea.
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Miles Jennings
@milesjennings
6/ Ultimately, Decentralization is the best long-term strategy - it enables broad token distributions, more use cases, and products that embody the best qualities of blockchain networks. But Exclude and Restrict can help you get there. For more, see: https://a16zcrypto.com/posts/article/navigating-token-launch-risks/
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Miles Jennings
@milesjennings
7/ And for more from the @a16zcrypto token launch playbook, see: https://a16zcrypto.com/posts/series/token-launch-playbook/
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