# VCs vs Retail Tokenomics on Solana Ecosystem

- What is the purpose of integrating a token, and how should it be designed from a first-principles approach in order to accomplish that goal?

- Is raising via equity sale a viable option as opposed to launching a token? Under what circumstances?
- Common tactic of Trading Firms to make large investments in locked tokens and goad ppl into pumping in short- and medium-term and then not caring if it's down significantly in secondary market because even if its -90% they are up 10x
- We are not in a capital-constrained market environment: teams with solid devs and ideas dont "need" VC money, theres plenty in the broader space but often limited to secondary market
- Pre-product vs post-product team strategies
- Importance of rewarding users / community (who add significant value -- see Frog Nation) -- retroactive airdrops etc
- How to keep teams incentivised / allow for new team members to join and be incentivised (Team Treasury management -- should always have tokens to avoid tragedy of commons)
- The community should not feel like investors are not "in it together" in terms of price entry
- Historical relevance: Curve high FDV obfuscating per-token value, liquidity mining in DeFi summer food token ponzis
- Circulating vs High FDV
- Liquidity mining as a problem (case study: STEP -- Step Finance)
- VC raise at discount + uncapped IDO raising from public at multiples premium
- What is the balance between Team Incentives / Project Growth & Marketing / Community / Retail investors ?
- "Fair launch" criteria?
- No one other than team gets "special" access to cheap token prices
- No hyperinflating of passive investors

- Value-accrual models
- buy and burn
- distribute protocol revenues (tax inefficient)
- raw utility (discount for services by holding / paying in token)

- DAO or no DAO?
- legal benefits
- community benefits from owning
- is community the right "ruler" for a project? or better to have a strong central team