By Tomasz Tunguz, venture capitalist at Redpoint
Unlike equity-only startups, crypto startups maintain two capitalisation tables. The first is the equity cap table, just the same as non-crypto startup. The second is the token cap table: who owns how many tokens.
In the early days of crypto, the convention for the genesis token distribution[1] was 80/20 community/insiders.
Employees, investors, and the foundations responsible for running the projects (insiders) retained 20% of the tokens. At IPO for a classic startup, equity allocation is the reverse. Insiders own 80%.
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