Clear DefinitionsFair Launch
1 min read
Pronunciation
[fair lawnch]
Analogy
A fair launch is like a public lottery with no VIP tickets—everyone who shows up at the start has the same chance.
Definition
A token distribution model where no private sale or pre‑allocation occurs—everyone has an equal opportunity to acquire tokens at launch.
Key Points Intro
Fair launches promote decentralization through:
Key Points
No insiders: Zero pre‑mint, no team or investor allocations before launch.
Open access: Anyone can participate under the same conditions.
Transparent mechanics: Rules and code published in advance.
Community driven: Emphasizes grassroots growth over private funding.
Example
Yearn Finance’s YFI token had a fair launch in 2020: zero pre‑allocation, liquidity mining only, with all tokens earned by community participants.
Technical Deep Dive
Fair launch contracts mint tokens only during a community‑governed staking period, often via a liquidity mining contract. Token contract disables owner minting functions post‑launch. Governance modules may transfer control to a DAO once distribution completes.
Security Warning
Absence of initial funding can lead to limited development resources; ensure sustainable funding mechanisms.
Caveat
High network fees at launch can exclude smaller participants, undermining fairness.
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