<aside> 🧠 AI-focused fair launch platforms pave the way for thriving token economies and communities.

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Table of Contents

Key Takeaways

• The current token launch landscape, dominated by high fully diluted valuations (FDVs) and low float token models, has created an unfair environment for retail investors, leading to unsustainable valuations and limited price appreciation for public market participants.
• Successful fair launched tokens that make their token holders rich tend to have active communities and vocal members, fostering greater loyalty, engagement, and network effects.
• New fair launch platforms, such as Morpheus' MOR20 and ORA Protocol's Initial Model Offerings (IMOs), are emerging to address the shortcomings of the high- FDV, low-float token model by enabling fair and transparent token distribution processes for AI projects.
• The success of these fair launch models is evident in the cases of Morpheus and ORA Protocol's OLM token, demonstrating the effectiveness of these frameworks in raising funds and showcasing the fair distribution of tokens and the democratization of AI model ownership.
• As more projects embrace fair launch principles, there will be a proliferation of innovative and diverse AI applications leveraging these platforms to launch their tokens, leading to a more equitable, community- driven, and accessible AI ecosystem.

Low Float, High FDV

The modern token landscape, marked by high fully diluted valuations (FDVs) and low float token models, has left retail investors disillusioned and frustrated. Unfair token distributions favoring VCs and insiders, unreasonable valuations disconnected from fundamentals, and private market price discovery have pushed retail investors to seek opportunities further down the risk curve, where liquid market price discovery is more accessible.

The demand for fairly launched tokens is evident, as shown by the rapid success of platforms like pump.fun, which enable anyone to launch their own memecoins fairly.

This trend highlights a significant product-market fit (PMF) with memecoin fair launch platforms. However, these meme projects often lack the substance and technical fundamentals that attract long-term investors.

New fair launch platforms focused on bootstrapping AI projects are now emerging and are expected to benefit from the proven PMF of memecoin launch platforms.

These platforms have the potential to ignite new onchain business models, enabling smaller developers to secure funding with speed and transparency, bypassing traditional private market hurdles. This approach will return asset price discovery to liquid markets, where public market participants have a chance to capture more of the upside, fostering more incentive aligned token distributions.

Unfairness Around New Token Launches

FDV is a meme... until it's not, and the token unlocks start happening. This was one of the "investment metas" during the 2021 bull run when tokens like Filecoin (FIL) and Axie Infinity (AXS) reached absurdly high FDVs compared to their market caps. Investors collectively embraced these tokens, claiming the initial 12-month period without unlock events was bullish, leading to hyper speculation in low-liquidity markets. Rekt.