The acronym TGE stands for Token Generation Event, which represents the moment when, for the first time, a token is generated on its blockchain and made available to the public.
The introduction of new models of public crypto-asset offerings, either as a means of addressing some of the ICO concerns or a mechanism of issuance specialization, could be the reason for the decline in the number and volume of ICOs after 2018. A new model called a Token Generation Event (TGE) is a novel paradigm that focuses primarily on utility tokens. TGE is the period during which tokens are issued by a blockchain start-up and made available to the public (for instance, via initial coin offerings). These tokens are designed with utility in mind and initially only represent a small portion of the finished product. Although it lacks a value store of its own, it is designed so that applications may be built around it.
One must comprehend the fundamentals of tokens in order to comprehend what a token generation event is. This article will explain various types of tokens and the significance of Initial Coin Offering (ICO), Initial Public Offering (IPO), and Token Generation Event (TGE).
‍Platform tokens are designed to support a decentralized application on the blockchain. For example, The Uniswap platform, which provides liquidity to automated market makers (AMM), has its own native token, UNI. It is a decentralized application allowing users to exchange different tokens created on ethereum blockchain with other Ethereum blockchain based tokens through smart contracts. UNI is Uniswap's governance token as well, i.e., the more UNI tokens you own on the network, the more voting power you will have over protocol-related choices. Platform tokens acquire increased security and the capacity to facilitate transactional activity from the blockchains built atop.
Transaction tokens are used for transactions that act as units of account and are traded for products and services. They often work like traditional currencies but, in some cases, can offer additional benefits. For instance, users can carry out transactions using stablecoins like Dai without using a traditional intermediary or central authority, such as a bank or payment gateway. Furthermore, Dai offers transactional performance to other networks and serves as a medium of exchange. For example, POA Network developed xDai, a Dai-like transactional token that resides on a sidechain and enables quick, low-cost transactions than traditional systems like banks or Paypal.
On the blockchain, utility tokens are incorporated into a pre-existing protocol that is utilized to access its services. Unlike security tokens, they are not intended for direct investment but can be used to pay for services within the respective ecosystems. A platform and a utility token operate together synergistically because the platform offers protection for the security token. In contrast, the token generates the network activity required to support the platform's economy.
NFTs are unique (non-fungible), cannot be exchanged for an identical item, and represent ownership of individual items such as digital art. Think of them as a certificate of authenticity when discussing artwork on the internet.
While conducting a token generation event, creating a product is the first step, i.e., you must have a product that utilizes your token before continuing. You can create a blockchain-based product by seeking the advice of a qualified blockchain advisor. Also, consider hiring a legal advisor who will let you know if your product is compliant with the regulations in your jurisdiction.
An essential marketing tool for your token-generating event is a whitepaper. The document outlines the market issue and how you intend to use blockchain technology to address it. The project goals, team, roadmap, token distribution percentages, and legal facets of your business are the key contents of the whitepaper.
If you build a supporter base, your token sale marketing will prosper. Therefore, develop a community to help you sell the project and generate buzz about it. Discord, Slack, Telegram, and Twitter are specialized platforms where a crypto community can spread the news about the product. However, once you establish a community, it's crucial to manage it by continuously maintaining engagement.
When you are ready for a token-generating event, one of the most effective ways to generate the most leads is to get in touch with various exchanges to list your token to trade on the open market. In general, it is advantageous if your token is listed on reputable exchanges.
The expression "Initial Coin Offering" implies the creation of a coin as a means of raising money. However, not all fundraising takes place to raise funds from stakeholders. It is for this reason that the term "Token Generation Event" is widely used. The more the token investor community gets involved, the more successful the TGE will likely be. Investors who HODL (Hold On for Dear Life) their coins, tokens, or digital assets at a nascent stage reap increased profits. Supporting a crypto project at an early stage integrates trust and uncapped potential for investors. However, conducting due diligence before making an investing decision helps protect against any losses that may occur.