Binance founder Changpeng “CZ” Zhao has proposed a new way for crypto projects to issue tokens, laying out a structured plan via an X post today that ties token unlocks directly to price performance and time intervals.
CZ’s idea is tokens should only be unlocked in stages, and only if the price doubles and stays above that level for 30 days straight before the next release.
How CZ’s proposed system would work
The concept is designed to stop projects from flooding the market with tokens at low prices, a common issue that leads to sudden price crashes. CZ said:
“Each future unlock must meet ALL of the following conditions: 1. Six months after the previous unlock. 2. ONLY IF the token price has sustained above 2x of the previous unlock price for more than 30 days immediately before the unlock. 3. Up to 5% of tokens maximum each time.”.
Under CZ’s model, let’s say a token starts at $1 in January with its initial 10% unlock. By June, if the price is still below $2, no additional tokens can enter the market.
But if it reaches $2 or more and holds that level for at least 30 days, then by August, 5% more tokens can be unlocked.
If the price hits $3 on August 3, the next possible unlock won’t happen until March 3 of the following year, and only if the price has surged beyond $6 for another 30-day period.
“The project team does NOT have the discretion to shorten or increase the size of the next unlock. The tokens shall be locked by a smart contract where a third party controls the keys. This avoids new tokens flooding the market when prices are low. It also gives the project team incentives to build for the long term,” said CZ in his post.
Right now, crypto token issuance varies widely depending on the blockchain and the project. Some, like Bitcoin, have a fixed maximum supply—only 21 million BTC will ever exist, and once they’re mined, that’s it. Others, like Ethereum, don’t have a cap and continue issuing tokens as part of their economic model.
It is important that blockchain-based projects and cryptocurrencies, in general, detail how the process of token issuance works for their specific system. As there are numerous consensus mechanisms out there, different crypto blockchains have various setups when it comes to token issuance.
CZ’s idea would bring more structure to token issuance, making sure projects don’t just release new tokens whenever they feel like it. The smart contract-based lockup system the Binance founder described would remove manual control, ensuring that unlocks happen only under predefined conditions.
Token issuance also plays a role beyond cryptocurrencies. Tokenization—the process of putting real-world assets on the blockchain—relies on token issuance to create digital versions of assets like real estate, stocks, and commodities. While CZ’s idea focuses on crypto tokens specifically, the principles of controlled issuance could have wider applications.
For now, CZ made it clear that he has “no plans to issue a new token” himself. But with this idea now out in the open, it remains to be seen whether crypto projects will adopt it—or if it will start a debate on how tokens should be released in the future.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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