Unit 2 · Level 4 · Reading a token
The allocation pie
Almost every project publishes a pie chart of who gets the tokens. Bitcoin's pie is boring: 100% mined into existence, no slices reserved for anyone. Many 2021-era launches were the opposite: nearly half the pie pre-cut for team and investors. The pie doesn't lie; you just have to look at it.
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What you get asked
A launch allocates 25% to the team and 25% to private investors. What's the straight-talk conclusion?
50% insider ownership isn't automatically fatal, but it means the biggest holders can win even at prices where you lose.
The chart showing how a token's supply is split between team, investors and community is the ___ pie.
It's usually one click away in the docs. Not reading it is like buying a company without asking who owns it.
Match each pie slice to the question you should ask about it
The percentages start the conversation; the lockups, prices and controls finish it.
How was Bitcoin's supply allocated on day one?
Bitcoin had no pre-sale, no team slice, no treasury: coins only ever came from mining. That's why it's the benchmark other pies get compared against.
Two projects both give insiders 30%. Project A vests over 4 years; Project B over 6 months. What matters more than the matching percentages?
A pie chart without a vesting schedule is half a document. Same slices, wildly different risk. 🐜
The rest of this unit
Allocation pies, ponzinomics, and the checklist that spots exit liquidity.