Both Basis Shares and Basis Cash does not have any pre-allocations to neither the founding team, nor any external investors. Shares are instead distributed to community members that perform actions beneficial to the network.
Fair, open distribution of the entire token supply is advantageous to the protocol's long-term success, rewarding those with a stake in the network, instead of investors / speculators targeting short-term profits.
Moreover, distributing BAS rewards provides a strong financial incentive for network bootstrapping, boosting adoption via network effects. For example, rewards given to Basis Cash liquidity providers prevent Basis Cash from becoming significantly devalued, something that can be detrimental for the network.
Last modified 2yr ago