Should team members hold too much of tokens?

[carcas]

I am very worried if the project member team has a large number of tokens. Not negative thinking, but if seen from experience, many of them will sell large amounts and leave the project

[mohdelayo]

Ripple have always been a pure centralized project, no core enthusiasts of blockchain and decentralization will love the XRP technology except when they want to ride if wave for some quick gains. XRP doesn't have a use case, thus the team holding it is their way of making themselves rich at the detriment of hodlers. I strongly support the communities call to the team to burn the coins in their possession.

[Nestle]

I just found out that the Ripple team got 62% of the total coins for their team. When compared to other projects or tokens I think it is too much and it is very difficult to increase the price. I just heard the news that one of their team was selling ripple in large quantities recently, is that true?

[Evgenklm]

At the expense of Ripple, everyone is already used to this and knows that the team likes to sell its share of tokens to hamsters , and this happens regularly. it would probably be nice if they burned 48 billion XRP.  but it seems to me that they will not go for this, they are used to a certain comfort zone.

[Absolutep]

It is not a good idea at all when team hold larger part of the token, it is unprofessional to me. I don't see the need why the team will hold more tokens than the community itself if the team believe in the potential of the project. Most times when team hold more tokens, they may likely dump on the community especially when the project is not looking like it will succeed.

[Lanirex]

If that is allowed by the developer, then the project team should hold a token so that it can give more trust from people who participate in the project. With a team that already holds the token, it means that there is a guarantee that the project is not a scam, and it will pay off!

[yurez]

The most optimal when the team has 5-10% of all coins on hand.  All team coins must be blocked and gradually, in small amounts, once every quarter, the coins are defrosted.  Thus, investors will feel safer and will invest larger amounts in the project.

[disconnectme]

No, it is a threat to token holders and even the project itself, before the influx of VC's money into the space, 10% of the total tokens use to be the acceptable figure but now you see them holding as high as 50% and some will just sell 5% to the public and the remaining tokens will be shared among the team, advisors and their VC's investors. I believe time will come that people will frown at this

[smart_oa]

So far, I count a project as potential when the team only holds no more than 15% of the total supply, because if the team members hold too many tokens, they can sell off, causing the token price to drop as soon as the bull run starts.

And we see that risk most evident in the case of XRP & Ripple. Ripple holds 62% of the total supply, equivalent to 62 billion XRP tokens, the fact that they lock 55 billion XRP and release 1 billion XRP per month also does not help the controversy associated with the token sale of the team members. As a result, the XRP community is asking the team to burn 48 billion XRP that the team holds.

XRP is not a true cryptocurrency, they are centrally operated and easily manipulated by Ripple itself.

In your opinion, what percentage of the project's total token supply should the team hold? Some teams of newly emerging DeFi projects are not even owning project token, is that the solution and current trends?

XRP team said that their community could force them to burn that 48 million tokens. Is it that true their community can do that? if their community has influence over their governance then that will probably happen. In this present situation, any project holds 62% of its token people would fear to invest in that project.

[Filo]

They have to hold them to develop the project. But the tocenomic must be decent and clear. You know inflation may ruin even the biggest projects.

[Galley]

It depends on the project itself. In my personal view, it is no problem if the team members have a higher number of tokens since they are the owners. The most important thing is they can keep the value of the token be always good. Don't dump the token price with their tokens. As they have a bigger number of tokens, those team members must promise to never sell massively the tokens at one time.

Promising doesn't mean getting married. By the way, this proverb reflects the situation you have touched upon. You can promise one thing, but do something completely different. And many people use it. Concrete solutions are needed, without reverse action.

[Arkann]

Actually, there is nothing wrong with the fact that developers can be large holders of their coins, but if you take into account the circumstances that are developing around the Ripple project, where the team itself is involved in manipulation, then this fact is very alarming to me. Although in fact the developers should be worried about their project and it is quite logical that the investor can abuse, as opposed to the developer, the facts speak for themselves.

[Quantum X]

Yes it could that is why if the team want to provide good impression and want to acquire the trust of the investors they should have to at least reduce the allocation for themselves. But on the other hand if their tokens are lock I think it is good enough which is why many were doing it and even until now.

[tor]

Most of the tokens that are in the same hands is not good, since we do not know what a large token holder will do, if he sells a large volume, this will collapse the price

[nelson4lov]

So far, I count a project as potential when the team only holds no more than 15% of the total supply, because if the team members hold too many tokens, they can sell off, causing the token price to drop as soon as the bull run starts.

It's really bad for a team to hold more than 15% of the total coin supply, because just as you said if they eventually dump their tokens its going to drop the price of the token massively, I personally I won't won't invest a project where the team holds that much amount of token to themselves, the best amount to be held by a project's team should be 5-10% and nothing more.