Mechanism Capital: The best token economic model design is not to place lock-in restrictions on investors

Andrew Kang, co-founder of Mechanism Capital, wrote on the X platform: "This sounds counterintuitive, but the best token economic model design for a project is to not put lock-in restrictions on investors and let as many tokens circulate as possible on the first day (except for team and treasury shares). A one-year lock-up period plus a release period of three to four years is a poor standard that stems from a misunderstanding of capital markets and lazy copying of previous projects. In fact, longer unlock restrictions have little impact on investors' investment after TGE, and good investors will support the project regardless of whether the tokens have been unlocked or not. Industry standards need to change. "