In 2018, after the regulatory scrutiny of ICOs, teams began to shift towards more regulated approaches such as SAFTs. Another trend that emerged was Initial Exchange Offerings (IEOs) where a crypto exchange acts as a gatekeeper for new token sales,
and Airdrops where tokens are distributed for free to existing holders of a specific token or to users who complete certain tasks such as signing up for an exchange or social media platform.
The year 2019 was also marked with decentralized finance (DeFi) rising, and with it came token farming. Token farming is a way
to generate yield for holders of a specific token by locking them up in a liquidity pool and earning rewards. This approach has become increasingly popular as investors seek high yields in the crypto market.
In 2020, there was a significant acceleration in innovation within the token distribution model space. This included new methods such as liquidity farming, stakedrops, and community sales. Some projects in the DeFi (Decentralized Finance) sector chose
to distribute their tokens directly to their users instead of conducting traditional token sales.
In 2021, the acceptance of different models such as stakedrops, community sales, launch auctions, and DeFi token distribution provided a diverse range of options for investors. Token distribution in 2021 incorporates elements from both traditional token sales, where the crowd is engaged and DeFi token issuance, where the users are empowered to provide value to the project.
Moving through 2022, Non-Fungible Tokens (NFTs) and tokenized assets had emerged as the new trend, where NFTs represent ownership of a digital asset such as artwork, videos, and other creative work, and tokenized assets represent ownership of real-world assets such as Real estate, gold and other tangible assets.
The evolution of token distribution models has been a rapidly changing landscape in the crypto industry. It started with the fair distribution of mining rewards in the early days of Bitcoin and has grown to include a variety of methods such as ICOs, SAFTs, IEOs, token farming, yield farming, and NFTs. Each of these models has their own unique characteristics and appeals to different types of investors. However, it's also important to note that as with any emerging and volatile market, there are also risks
to be aware of when investing in tokens, including regulatory scrutiny and the risk of fraud.
In the current crypto economy, community rounds have emerged as an important and innovative method of token distribution. Unlike traditional token sales, community rounds focus on engaging and empowering the community to support and drive
the success of the project. By providing early access to tokens and a say in the project's governance to community members, these rounds align the incentives between the project and token holders, creating a stronger and more engaged community that
is more likely to drive the success of the project.
Token issuance has been a dynamic corner of the crypto industry and it is a way to raise capital for new projects. Despite some predictions that token issuance would die out, it has continued to evolve with new models emerging such as Initial Coin Offerings (ICOs), Simple Agreement for Future Tokens (SAFTs), Initial Exchange Offerings (IEOs), and token farming. These models have attracted investors looking for liquidity, transparency, and network effects in contrast to traditional equity markets. The crypto industry has evolved rapidly over the past few years and this is expected to continue, potentially offering new opportunities for investors.