Community allocation refers to the portion of token supply set aside for distribution to the project's user community. This can include airdrops, liquidity mining rewards, contributor grants, bug bounties, and other programs designed to grow and engage the ecosystem.
A healthy community allocation is generally seen as a positive signal, indicating that the project prioritizes decentralization and user participation over insider enrichment. Community allocations typically range from 20-40% of total supply.
The distribution method and timeline for community tokens varies widely. Some are released through automated reward programs, while others are distributed through governance-approved grants and incentive programs.