Resisting the FDV & Float Trap: How StarryNift Deliver Lasting Value?

5 min readJun 7, 2024


The cryptocurrency community has recently been intensely focused on the proliferation of tokens with High FDV and Low float. Concerns have arisen that these tokens often launch with a low circulating supply, allocating a significant portion for future release. Once listed, they experience rapid price appreciation due to the limited liquidity available for trading at launch. However, this is often coupled with massive token unlock waves from larger investors who participated in the initial offering. This unsustainable combination may leave little upside potential remaining for retail investors.

These concerns are backed by data from CoinMarketCap, which indicates that from 2024 to 2030, around $155 billion worth of Low float & High FDV tokens will be unlocked. Without a proportionate increase in buyer demand and capital inflows, this influx could exert significant selling pressure on the market.

This is a concerning phenomenon, driven by excessive private capital, aggressive valuations, and overly optimistic market sentiment. High FDVs allow insiders to capture outsized gains. Consequently, many projects opt for Low Initial Float, creating artificial scarcity that spikes prices and inflates valuations. However, this ultimately harms the interests of retail investors. By prioritizing short-term profits for team and VC, these projects pre-deplete the long-term value that should accrue to the broader community.

It is heartening to see our investor Binance taking the lead in supporting smaller projects through a public listing program, as the long-term core interest in exchanges lies in the profitability and growth of their user base, rather than just extracting value in the short term.

The $SNIFT token by StarryNift has been designed with the principles of High Float and Low FDV in mind since Day 1. Let’s explore how this has been achieved.

How to Achieve Low FDV for $SNIFT

Visionary & Constructive Investors

StarryNift is fortunate to have the long-term backing of visionary global investors like SIG, Binance, and OKX, who have been with us since the early seed and pre-A rounds when valuations were more modest. Their support, coupled with the dedication of our team and the backing of our community, has enabled us to sustainably operate for the past three years. Additionally, influential Web3 OG pioneers like Jihan Wu (Founder of Bitdeer NASDAQ: BTDR) and Richel (Founder of Synfutures) serve as individual investors and consultants, providing valuable guidance and support.

The restrained valuation of StarryNift is thanks to these quality investors, who are not rushing to inflate the FDV for quick and aggressive profits. Instead, they aim to help build a high-quality project with genuine use cases and value for the Web3 industry, while also establishing their own brand reputation.

Self-Sustaining Business Model

We have secured successful and stable revenue streams across diverse product verticals, including NFT sales, entertainment event ticketing, and game AI service subscriptions. Additionally, we generate revenue from B2B services such as carnival marketing and custom brand 3D space creation. Looking ahead, we anticipate income from infrastructure protocol services.This healthy, sustainable profitability model with reliable cash flow means we do not need to urgently seek additional funding or inflate our valuation for further rounds. This financial stability allows us to continuously invest in platform development, fueling the creation of a robust product ecosystem.

Longer Vesting for Bigger Future

As mentioned, our investors and team are focused on long-term value creation, not short-term gains. In the long run, our FDV will naturally increase as the project matures, but in the initial stages, there is no need to artificially enhance it for quick profits.

As a visionary team, our focus lies in the long-term development of the project rather than pursuing short-term gains. We are committed to building for the future, not merely for immediate profit.

To demonstrate our commitment and confidence in the project, our team will only receive a 5% token allocation, which is lower than the allocations seen in most projects. Additionally, both team and treasury tokens will undergo a vesting schedule with a 1-year cliff, followed by linear vesting over 5 years. This approach aligns with our emphasis on sustainable, long-term value creation rather than artificially inflating initial valuations for quick returns.

These measures underscore our dedication to nurturing the project’s growth alongside the community, with a shared vision for healthy long-term valuation appreciation. Our goal is to build a solid foundation for the future, prioritizing sustainable growth over short-term gains.

How to Achieve High Float for $SNIFT

Prioritizing Community Token Allocation

StarryNift will allocate approximately 23.22% of $SNIFT at TGE conditional on guidance of exchanges, which is notably high for the initial circulating supply. Out of this, only about 2% of the tokens will be released to investors at TGE, with the remainder being linearly released over a two-year period. This approach ensures a high circulation ratio at TGE while minimizing sell pressure at the listing, thereby safeguarding the interests of the community users.

In addition, we will allocate around 50% of the tokens to the community, which is also a significantly high proportion compared to most projects. These tokens allocated to the community will gradually transition into the full circulating supply through mechanisms such as “AI to earn” as the ecosystem develops. This strategy not only ensures sustained growth of the project with high float but also maintains decentralization of the token and minimizes sudden sell-offs.

“Allocating for the Future” Token Economy

Treasury has long-term initiatives. The effort will be overseen by both the DAO, who have voluntarily extended the token vesting period to safeguard the community’s long-term development.

We believe this fair, sustainable token distribution model will foster a more cohesive and influential community. The resulting stronger consensus can amplify our brand visibility, complementing our continuous development, events, and marketing to attract genuine users and drive increased demand and liquidity for $SNIFT.

Anchoring to Real User Value

By prioritizing utility and long-term value accrual, we aim to build a strong, trustworthy community that stands the test of time. Our $SNIFT tokens offer a diverse range of utilities, including but not limited to:

  • Access to AI agent services for investment, gaming, and advertising
  • Rewards and exclusive items in Merchandise Hub for both Web2 and Web3 users
  • Citizenship upgrades to unlock social achievements
  • Profit-sharing from our launchpad and early access to incubated projects
  • Future use as gas for deploying dApps on new protocols and sidechains
  • Governance rights to oversee and shape the project’s development

This vibrant token economy can activate more token utilization scenarios, which will cultivate a more organic token flow cycle. It also can enable token circulation among diverse participants such as traders, investors, and application users. These can further generate real demand and maintain a healthy float for $SNIFT.

In conclusion, StarryNift’s vision is backed by long-term vision investors & team, a sustainable business model, ensuring a low FDV. Meanwhile, our substantial community token allocation, long-term token consumption mechanisms, and genuine future utility work together to create and maintain a High Float.

Through this balanced approach, we aim for $SNIFT to exemplify a High Float & Low FDV token that can withstand the test of time. By prioritizing the persistent interests of our community, we are dedicated to building a vibrant and resilient ecosystem for the Web3 AI-powered Metaverse.

About StarryNift

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StarryNift is a gamified metaverse co-creation platform, bringing to you immersive virtual experiences where you can Play, Create and Socialize.