ALLOCATION

The term, allocation, simply pertains to either tokens or equity that had been allotted; these may be earned, bought, or set aside for the use of a specific investor, team, institution, or any other entity.

Within the production of a whitepaper, the team or the group that discusses the specifics of the document decides the allocation for tokens and divides such into different initiatives and across the departments involved in decision-making. Marketing, operational costs, and development are touched upon when talking about allocation. Through these facets, the allocation for a token treasury to be used is determined by the community.

Investments are also able to receive allocations incrementally through rounds of investments. For instance, a team may sell allocations of a determined “ticket size” or maximum amount to preliminary investors through a sale round that is private.

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