Which distribution model, pari passu or pro rata, is more commonly used in the cryptocurrency industry and why?

3 answers

• Feb 17, 2022 · 3 years ago
  In the cryptocurrency industry, the distribution model that is more commonly used is pari passu. This model ensures that all investors are treated equally and receive the same proportionate share of the distributed assets. Pari passu distribution is preferred because it promotes fairness and transparency, which are crucial in the decentralized nature of cryptocurrencies. By treating all investors equally, it reduces the risk of favoritism or discrimination and enhances trust in the project or token. Additionally, pari passu distribution aligns with the principles of decentralization and community-driven initiatives often associated with cryptocurrencies.
  662331
• Feb 17, 2022 · 3 years ago
  When it comes to distribution models in the cryptocurrency industry, pari passu is the more commonly used option. This model ensures that all investors have an equal claim to the distributed assets, regardless of their investment size or timing. Pari passu distribution is favored because it eliminates any preferential treatment and promotes a level playing field for all participants. This fairness is crucial in a decentralized ecosystem where trust and transparency are paramount. By adopting a pari passu distribution model, cryptocurrency projects can demonstrate their commitment to equal treatment and build trust among their investor community.
  653218
• Feb 17, 2022 · 3 years ago
  In the cryptocurrency industry, the distribution model that is more commonly used is pari passu. This means that all investors receive an equal share of the distributed assets, regardless of their investment amount or timing. Pari passu distribution is preferred because it ensures fairness and prevents any preferential treatment. It aligns with the decentralized nature of cryptocurrencies, where transparency and equal opportunities are highly valued. At BYDFi, we also follow the pari passu distribution model to ensure that all our token holders are treated equally and have an equal chance to benefit from our project's success.
  634159