Token allocation refers to how a project divides its total token supply among various stakeholder groups. Common allocation categories include team and founders, investors (seed, private, public), ecosystem/community funds, treasury, staking rewards, and advisors.
The allocation structure is a fundamental aspect of tokenomics design. A well-balanced allocation ensures that no single group holds an outsized share that could lead to centralization or excessive selling pressure. Typical team allocations range from 10-20% of total supply.
Each allocation category usually has different vesting terms. Team and investor tokens typically have the longest vesting periods, while community and ecosystem allocations may be released more gradually through staking rewards or grant programs.