How to read a project’s token distribution
To read a project's token distribution, check the allocation chart, supply figures, and unlock schedule against the token contract on a block explorer.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Team and early investor slices show insider weight.
- Circulating, total, and max supply measure different things.
- Record every figure and its date for later checks.
The chart is the headline, and it is the easiest part to misrepresent. The contract records what the project did, so it is the version worth trusting.
What to gather before you start
Start on the project's own website and in its documentation. The contract address usually sits near the tokenomics page and the unlock schedule. Copy the address rather than the ticker, since tickers repeat across projects.
How to read the token distribution
The chart, the supply figures, and the vesting terms answer different questions, so read them in order. The chart shows who received what at launch. The vesting terms show when insiders can claim the rest.
- 1Read the allocation chartList every slice the project names, such as team, early investors, treasury, community, and liquidity. Note which ones it calls locked.
- 2Spot insider-heavy splitsAdd the team and early investor slices together. When one group holds a large share, most of the future selling can come from that group.
- 3Compare the supply figuresCirculating supply can trade now, total supply exists after minting, and max supply is the ceiling. A wide gap usually means locked or reserved tokens, so check the contract.
- 4Find cliffs and unlock datesA vesting cliff is the wait before the first batch becomes claimable. For each unlock, note the date, the size, and the recipient group.
- 5Verify lockups on-chainOpen the contract in a block explorer. Read the holder list, any lock or vesting contracts, and any admin function that can mint or change the terms.
After you finish the review
Write down what you found, because allocations and vesting terms can change by governance or a contract update. A site that copies a project's name and asks you to connect a wallet is not a dashboard.
Frequently asked questions
FDV multiplies the token price by the total or max supply, so it counts tokens that cannot trade yet. It gives a rough size for a project with a large locked share.
The project's documentation and tokenomics page are the usual first stop. A block explorer shows when tokens actually moved, which matters when a stated date and the record disagree.
It is the waiting period before the first batch of a group's tokens becomes claimable. After the cliff, the rest usually releases on a set schedule.
No. An unlock makes tokens transferable, and the holder decides what to do with them. The size of the unlock next to circulating supply matters more than the date.
