Blockchain enthusiast developer and writer. My telegram: ksshilov
‘Fair launch’ of a crypto project = Tokens are distributed fairly to the market participants. There is no founder allocation, early access. Everyone is equal in the project’s ecosystem on day one.
‘Free lunch’ means that there is no cost incurred to work for acquiring the tokens.
While most DeFi (decentralized finance) projects are promoting a fair launch where the participation is designed as a transparent process where everyone is playing along with everyone else (even the founders), being part of the ecosystem comes with a price, literally.
Isn’t the participation permissionless? It is. As long as you have initial funds and a computer ready to become a market maker. I’m not counting the computational power of this computer or the electricity consumed in the process as, most of the time, it’s meaningless. The initial token inventory required is the real price.
If you are not familiar with the ‘market maker’ term, it refers to a participant of an exchange (cryptocurrency exchange in our case) who buys and sells securities (tokens in our case) at market prices in order to provide liquidity.
Centralized cryptocurrency exchanges are paying millions of dollars per year to such market makers. Imagine going on one of