> ## Documentation Index
> Fetch the complete documentation index at: https://docs.theblockchainlibrary.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Token Generation Event

> An event or process where a new token is initially created and made available according to a project's distribution plan.

# Token Generation Event

An event or process where a new token is initially created and made available according to a project's distribution plan.

## Definition

An event or process where a new token is initially created and made available according to a project's distribution plan.

## Why it matters

Tokenomics describes how token supply, distribution, incentives, and utility influence a network economy.

## How it works

The TGE involves the deployment of an ERC-20 (or equivalent) token contract. Once deployed, the contract logic executes the initial minting of tokens according to the pre-planned allocation strategy. This event often triggers the release of funds from pre-sale phases, the opening of public liquidity pools on decentralized exchanges, and the start of vesting schedules for team members.

## Real-world example

The launch of Uniswap's UNI token was a famous TGE that involved an 'airdrop' to previous platform users to jumpstart governance.

## Advantages

* Official project launch milestone
* Enables token liquidity and trading
* Begins the project's economic lifecycle

## Limitations

* Highly vulnerable to volatility
* Often attracts short-term speculators
* Regulatory focus on launch mechanics

## Common misconceptions

* The TGE is the same thing as an ICO.
* The token has utility before the TGE happens.

## Related knowledge

* [Circulating Supply](/generated/v2/glossary/circulating-supply) — term
* [Token](/generated/v2/glossary/token) — term
* [Total Supply](/generated/v2/glossary/total-supply) — term

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**Canonical knowledge ID:** `glossary:token-generation-event`