What is Allocation in Crypto?

Allocation refers to the distribution of tokens or equity to specific parties such as investors, team members, or foundations. These can be earned, bought, or reserved for future use.

In crypto projects, token allocations are planned early—often in the whitepaper stage—to fund areas like development, marketing, and operations. Teams may also create a treasury allocation for long-term use.

Investors receive allocations in funding rounds like private sales or ICOs. Team members may get a team allocation as a reward, often released during the Token Generation Event (TGE) or through a vesting schedule.

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