Solana Labs co-founder explains early-stage project token issuance logic: Combining staking and fair issuance is superior to VC financing.

Solana Labs co-founder Toly posted on the X platform stating that combining staking with fair issuance is better than VC financing. If practiced effectively, the optimal capital formation methods for early-stage startups may include:

1) Rewarding long-term holders through a staking mechanism;

2) Releasing no less than 20% of tokens on the TGE day;

3) Minimizing the introduction of investors, and if introduced, unlocking 100% uniformly one year after the TGE.

In addition, team and investor tokens should not be unlocked at the TGE. The distribution method should be airdrops to core users or fundraising completed through fair auctions. Even though the concentrated unlocking one year later may seem to exert "considerable pressure," the market can effectively digest information that is known in advance. The one-year lock-up period will encourage investors who intend to exit in the secondary market to fully negotiate with those optimistic about the project and willing to increase their positions, while the primary market price will serve as an anchor benchmark. The staking mechanism can incentivize long-term holders, similar to early rounds where long-term capital achieves higher returns.