Allocations for holding an exchange token: computing the real yield

The main argument for a small user to hold an exchange token is access to launchpool farming and launchpad sales. The argument works, but with arithmetic that is rarely spelled out.

How to count

Participation income = (the value of allocations and farming received over a year) / (the size of the holding). The numerator depends on the number and quality of launches: in a fat year an exchange runs dozens, in a lean one - a handful. The denominator is your capital in the exchange token, which carries the token's own market risk the entire time.

The typical result: farming yield in annual percentage terms is single-digit, and one 10% correction in the token easily erases it. Real multiples come only from the rare hot sales - and there allocations are distributed pro rata to the holding, so a small deposit receives symbolic amounts.

When it works

• You already trade actively on this exchange - the fee discount plus farming turn the holding into cashback.
• The deposit is large: pro-rata allocations start to matter.
• You believe in the token itself - then farming is just a bonus on the position.

Holding an exchange token solely for the sale lottery is the worst option: the risk is constant, the prize is rare. Launch reviews - in the listings section.