What Is It Likely To Happen When A Startup Runs Out Of Its Own Token’s.

What Is It Likely To Happen When A Startup Runs Out Of Its Own Token’s.

2018-07-23 | Selina Mathew

What Is It Likely To Happen When A Startup Runs Out Of Its Own Token’s.


The UUU Network Team, back in early 2015 created the UUU token with the motive of a decentralized protocol for publishing and valuing online content with a total supply of the ICO token at 10 Billion. As per a recent press release by the company, the UUU network is short of UUU token’s due to the increasing demand in the market and their ongoing tie up partnerships with several other investors. At the time of initiating the UUU token, about 40% of its tokens were held by the team for its future development and for the founding of the team in future.


Yet due to the short supply of the UUU token’s left the UUU team announced that:

"The demand for UUU tokens has exceeded our current designated holdings.The team now faces a problem: leaving our ecosystem tokens intact, how do we pursue these new opportunities to grow the U Network ecosystem.”

As seen earlier, some projects do not limit the number of tokens that can be created within their blockchain ecosystem even afterwards while there are anothers like U Network that choose to implement a fixed market cap supply. Now the Network Team member’s are planning to back some of the UUU token supply back through an airdrop requesting its community holders by an airdrop.

What’s Next Now

As for now, the UUU Network Team has declared its plan of re-purchasing as :

"We believe it's a reasonable amount. Not too high to affect market price, not too low to affect the expansion needs."

The current situation that is faced by the UUU Network Team has made the similar projects think about the very same question:

“ What is likely to happen if the startup runs out of its token’s.”

Increasing the total supply of the token or to recreate token supply again within the ICO blockchain again is not an influential strategy against this because this decreases the trust of the investors in the project and therefore could alter with the ICO prices in future.

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