Tokenomics are Broken
Today, project teams issue tokens to themselves and sell tokens to private investors (at low cost basis) in order to incentivize team members and raise funds, respectively. As these tokens unlock, investors rush to sell their tokens ahead of each other, creating a race to the bottom. This significant imbalance between supply and demand results in market instability and reduced investor confidence.
A Better System
Baseline was created in direct response to the exploitative practices that market participants are forced to endure. Baseline aims to establish markets where transparency and fairness are hard requirements, and built-in at the technological level. The goal is to change the underlying mechanisms and align market participants towards shared, long-term value creation.
Baseline's Unique Tokenomics
In Baseline, all tokens are minted and distributed to investors at time of launch without any vesting schedules, thereby removing any supply overhang. Baseline mitigates the risks associated with early investor sell-offs by ensuring that there is sufficient liquidity to maintain a guaranteed floor price. This provides a stable exit point for all token holders, and builds confidence in investors by having transparent downside risk.