Points-for-airdrop meta ended: What's next for new token launches?

Every bull market brings new ways of token issuance, and understanding these trends can be the most profitable strategy.

The bull market brings new token issuance methods, and understanding these trends can be the most profitable strategy.

This cycle saw points airdrops, with projects like Jito and Jupiter leading the way.

But as speculators actively acquire points, their returns from airdrops don't match their costs, leading to a rapid decline in ROI.

The points mechanism is just one evolution in our search for the best token issuance methods in the market.

From Litecoin BTC forks that required running PoW machines, to ICOs, and then to DeFi liquidity mining, these patterns are quite clear: with each cycle, token issuance becomes easier, and valuations continue to rise.

The launch of high FDV tokens leaves little room for new buyers, marking the decline of the points mechanism.

Now, I believe the market is self-adjusting.

Due to a lack of interest from new buyers, the valuations of low liquidity tokens have decreased, but new tokens are still being launched as they were in 2023—raising funds for old mechanisms and designing TGEs.

The terms of locking limit their growth potential. TGEs that do not adapt to new mechanisms are unlikely to perform well.

The slower the adaptation of new token issuance, the longer the frenzy for Meme coins will last. Meme coins are the opposite of VC tokens, as they have no real utility, no revenue, and no future products.

Aside from Meme coins, a significant change is that the market is returning to the period before the points mechanism emerged: protocols like Eigenlayer are shifting towards "programmatic incentives," indicating a return to liquidity mining.

We are also seeing the rise of so-called private-public sales: on platforms like @echodotxyz and @legiondotcc, you can participate in and invest in deals involving VC participation.

This means lower valuations and lock-up periods, similar to the ICO era, but participating in these deals also requires some social resources:

However, due to the limited number of participants, these methods cannot solve all token issuance issues.

@CoinList "solved" this problem by randomizing access to ICO allocations. Interestingly, Coinlist launched this many years ago, so we have come full circle!

However, I believe that merit-based access is superior, as it incentivizes you to build your on-chain or off-chain reputation.

Therefore, make sure to actively share your favorite projects on social media, as this could lead to token allocations for you. Eigenlayer and Avail are just two examples of the growth of the yap-to-earn model.

Another potentially rising trend is the "Patron Sales" launched by @infinex_app. Infinex combines the points system with merit-based ICOs, requiring you to earn points to participate in the ICO.

For the first time in recent years, participating in token sales has become increasingly difficult, marking a shift away from liquidity mining, fair distribution, and points mechanisms.

It seems we have finally realized that simply distributing free tokens does not truly build a community!

However, other trends are more open to everyone. Runes on Bitcoin can be issued simply by paying transaction fees, and even with (optional) pre-mining features, they maintain transparency.

They address the lack of transparency in VC rounds, pre-sales, low liquidity tokens, and Meme coin issuance.

Runes may offer the fairest token issuance model. You only need to pay Bitcoin transaction fees, and the slower speed of Bitcoin prevents over-issuance and wallet centralization, which is different from other blockchains.

One example is the GIZMO•IMAGINARY•KITTEN token, which was minted for free and is now trading at 26 times its initial listing price on exchanges.

Clearly, Runes lack smart contract capabilities, preventing them from becoming tokens with real utility, but more and more BTC L2s can add these features.

We are also experimenting with other minting models:

Active validation services: AVS supported by re-staking protocols enhance the utility of tokens (e.g., rsENA x Symbiotic and re-staked MKR), although most AVS tokens are currently issued as VC tokens. Hopefully, they will innovate in token issuance soon.

More models are emerging, which is a good sign!

Our goal is to identify and participate in these new token issuance activities. Try all of these and see which one can make you money relative to the effort you put in.

One of these models (perhaps one I haven't mentioned here, that has yet to emerge) will become the new hot trend, and when it does, it could be a good time to invest.