How Does the Size of the Team’s Token Allocation Impact Investor Perception?

A disproportionately large token allocation to the team or founders can be a significant red flag, suggesting potential centralization of control and a high risk of large-scale selling pressure later. Investors prefer to see a reasonable allocation that aligns with industry standards and a substantial portion reserved for the community, ecosystem development, or public sale.

A smaller, yet fair, allocation combined with a strong vesting schedule is often viewed positively as it signals a commitment not solely based on a massive immediate payout. It reflects the project's decentralization philosophy.