Token Generation Event (TGE) explained

Token Generation Event or TGE is a series of events that resulted in the listing of a digital currency to a cryptocurrency exchange. It is different from ICO (initial coin offering) in the fact that it doesn't need to comply with security and exchange commission requirements before the token is listed. In this article, we discussed this finance term in detail.

1. What's a Token Generation Event?

A Token Generation Event (TGE) refers to activities performed by a project in the crypto ecosystem that resulted in the launch and listing of such a project's token in a recognized digital currency exchange. In simple terms, TGE is the series of events leading to the listing of a token in a tier-1 or other exchanges.

The activities include and are not limited to deciding the project tokenomics, carrying out pre-market, issuing airdrops, and the actual listing. Token generation events can be in a minimum of a few days, weeks, or months depending on the project's team expertise, available finance, and agreements with other bodies such as listing platforms and Blockchain network.

The main goal of a TGE is to make the native token of the project available to the public. This makes it similar to an Initial Coin Offering (ICO). However, it is a way to avoid legal issues in the country in which the project is located as well as reduce or avoid tax liabilities. 

2. Six (6) TGE Activities

Below, we looked at six token generation event activities.

2.1 Token creation

This is the process of making the native token of the project available. This involves a lot of processes such as choosing the Blockchain network to use, activities involved in mining the token, and so on. In some cases, token generation can be as simple as following instructions set by the project team. Such as following Twitter's project accounts among others.

On Telegram, projects are either involved in playing games, tapping on the screen, or performing stimulation activities such as in Hamster Kombat. The token creation usually takes some months and is done till when the listing date is close.

2.2 Background legal activities

The project team will have to carry out background legal activities with the government of the country it is located. This includes registering with the relevant regulators. 

2.3 Collaboration with Exchanges

When the background legal activities are carried out, the project team will start collaborating with cryptocurrency exchanges to push the listing of the native token. The team will have to decide on the exchange to list or could ask its users to decide on the best Exchange to use. Using legal activities and collaboration may occur simultaneously.

2.4 Pre market, launchpool, staking, etc activities

After collaborating with Exchanges, a pre market, launchpool, staking, or any other activities can be carried out. This is based on the collaboration with the digital currency exchanges. 

2.5 Airdrop

This is when the total mined supply of the project native token is shared among users of the project. The shares received by each user depends on how active each user engaged in the project. The more a user carries out tasks on the project the higher the shares of airdrop received. For example, a project may provide more claims to the shares of the native token during airdrop if the user provides more referers than others. 

2.6 Listing/launch

Here, the actual listing or launch of the native token on various digital currency exchanges. This TGE activities can occur before the airdrop or after it. 

In conclusion, token generation activities are done by startups and projects in the crypto ecosystem. It gives opportunities for the project to let their token go live and gives users the opportunity to earn passive income by carrying out certain activities. Have you been involved in this before? Let us know in the comment section.