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Definition team allocationfounder allocationinsider supply

Insider Allocation

The share of a token's supply reserved at launch for the founding team, employees, advisors, and early investors.

Launch distributions are published as a table splitting supply between public distribution, team, investors, ecosystem programs, and treasury, usually with a vesting schedule attached to each line. The insider share matters for two separate reasons: it determines how much dilution existing holders face as those allocations unlock, and it determines how much governance voting power sits with a small group. Verification means comparing the published table with the on-chain balances of addresses funded at genesis, since categories can be relabeled. An allocation described as ecosystem or community is only distinct from an insider allocation if a different set of people controls the wallet.

In practice

Comparing a published distribution table with the genesis balances of tagged addresses is the standard way to check whether the stated split matches the chain.

The common misunderstanding

A modest insider percentage in a published table can still coincide with concentrated control if the ecosystem or foundation allocation is held by the same multisignature wallet.

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Related terms

Foundation A legal entity, often a non-profit, created to hold assets and fund work on a blockchain protocol…
Governance Token A token that lets holders vote on changes to a protocol, such as parameters, budgets, and upgrades.
Initial Coin Offering A sale of a newly created token to the public to raise funds, typically before the product the…
Treasury (Protocol) The pool of assets a protocol or its governing organization controls, used to fund development,…
Unlock Schedule The calendar showing when locked tokens become transferable and enter circulating supply.
Vesting A rule that releases an allocation of tokens gradually over time instead of all at once, usually…
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