Solana Co-Founder Proposes Radical New Token Launch Formula

Solana (SOL) co-founder Anatoly Yakovenko (Toly) has outlined a radically different approach to cryptocurrency token launches, one that could upend the traditional venture-backed playbook and reshape how early-stage Web3 projects raise capital.

In a post shared on X on January 21, Toly argued that the current model, dominated by heavy VC allocations, long vesting schedules, and tiny public floats, is fundamentally broken. 

Instead, he believes the optimal capital formation framework should prioritize users over investors and reward long-term commitment through staking. As he said:

“If this works, I am pretty sure that the optimal formula to capital formation for early stage startups is:

1) staking for long term holders

2) day 1 tge 20%+ release of tokens

3) better to have zero investors but if you have some unlock them all 100% on the same day 1 year after tge

The rest is up to the pmf gods.”

A Token Model Built for Users, Not VCs

According to Toly, early-stage crypto projects should avoid heavy investor involvement altogether whenever possible. 

Instead, token distribution should focus on staking mechanisms for long-term holders, releasing over 20% of tokens at TGE to ensure real liquidity, no team or investor unlocks on launch day, 100% investor unlock exactly one year after TGE, and distribution via core user airdrops or fair auctions.

In his view, the dominance of venture capital has distorted token economics by concentrating supply in the hands of insiders while leaving retail traders to chase thin liquidity and inflated valuations.

Why Toly Thinks Token Launches Are Broken

Toly’s proposal directly challenges the standard crypto launch model, which entails low circulating supply, massive fully diluted valuations (FDVs), long VC vesting schedules, and aggressive insider distribution. 

This structure has repeatedly led to post-TGE sell pressure, price collapses, and retail losses once early investors begin unlocking.

By contrast, Toly’s model aims to create deep liquidity from day one, align incentives with long-term holders, let the market price tokens organically, and reduce the influence of financial engineering. In short, he’s arguing for a return to product-market fit first, speculation second.

A Potential Blueprint for the Next Crypto Cycle

As token generation events continue to face criticism from traders burned by overhyped launches, Toly’s framework is already causing debate across the crypto industry. 

If adopted, it could signal a major shift toward fairer token distributions, more sustainable price discovery, stronger community ownership, and less VC dominance.

In summary, with capital rotating back into on-chain ecosystems and builders preparing for the next wave of crypto adoption, the Solana co-founder’s proposal may become a defining blueprint for the next generation of Web3 startups.

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