Allocation

An allocation is the purchase, earning, or reserving of tokens or equity for a specific investor, team, organization, or corresponding entity. To ensure the long-term viability of their business model, blockchain startups must determine their initial token allocation, with different allocations for marketing, software development, and operational costs. Many blockchain projects also have their own treasuries and foundations, each with their own token allocation. It is also common for blockchain startups to assign specific token allocations to early team members, with the caveat that they cannot sell their tokens for several years.