Allocation

Tokens or equity can be acquired, purchased, or set aside for a specific investor, team, group, organization, or other relevant entity through the process of allocation. For a crypto team in the early phases of developing a whitepaper, the executive team or community may decide how token allocations should be split among various projects and departments, such as development, marketing, operating costs, and so forth. If a team has a foundation or other body that controls money, it may also choose to allocate money for a token treasury that will be used in accordance with the team's or community's rules. Allocations may also be given to investors during investment rounds. In a private sale round, for instance, a team might offer allotments to early investors for a certain "ticket size" or maximum sum. Each of these individual investing parties in this scenario would possess a portion of the total amount offered in that round of the sale. An individual entity may be able to accumulate allotments from various sales rounds, which would allow them to eventually take part in various stages of an Initial Coin Offering (ICO) or token sale event, with allotments set aside for each step. As compensation for their work, team members working on a particular coin, protocol, or project could also get a portion of the team allocation. These allocations, for example, could be distributed over time in accordance with a predetermined timetable or paid out all at once on a specific date, such as the day of a token generating event (TGE). In other circumstances, the distribution of the allocations occurs over time as part of a block reward, during a vesting term, or over a cliff.