Investor's wiki

Allocation

Allocation

Allocation is an allotment of tokens or equity, that might be earned, purchased, or set to the side for a certain investor, team, group, organization, or other related entity.
For a crypto team in its whitepaper stages, the executive team or community might deal with concluding what allocations of tokens ought to be split into various drives and departments, like development, marketing, operational costs, etc. Assuming a team has a foundation or other entity that is in control of funds, it might likewise choose to make an allocation for a token treasury to be used as determined by the team or community.
Investors can likewise receive allocations in rounds of investments. For instance, a team might sell allocations of a set "ticket size", or maximum amount, to early investors in a private sale round. In this case, every one of these individual investing parties would possess an allocation out of the total amount offered on that particular round of sale. An individual entity might can possibly hold allocations from various rounds of sale, and that means they could eventually participate in various stages of an Initial Coin Offering (ICO) or token sale event, with a predefined allocation for each stage.
Team individuals working on a specific coin, protocol, or project may likewise receive part of a team allocation as a reward for their work. For example, these allocations could be paid out at the same time at a certain date - like the date of a token generation event (TGE) - or spread out over the long run, following a predefined schedule.
In certain circumstances, the allocations are distributed over the long run as part of a block reward or over a vesting period or cliff.