Crypto Terms:
Letter T
What is Token Generation Event (TGE)?
Meaning:
Token Generation Event (TGE) -
an event when a crypto project issues its tokens and makes them publicly available for purchasing.
Let's find out Token Generation Event (TGE) meaning, definition in crypto, what is Token Generation Event (TGE), and all other detailed facts.
Essentially, during a token generation event, or TGE, a cryptocurrency project issues its tokens and makes them publicly available. So, before you can purchase cryptocurrencies on popular exchanges like Binance or Bybit, you can first do that during a TGE.
A token is a virtual asset that is created with a utility in mind. Tokens provide a simple entry into the bigger crypto economic system. They do not have a store of value on their own but they are made in a way that software can be developed around them.
However, there's also another widely used way of issuing and selling new tokens - an Initial Coin Offering (ICO). It is a type of crowdfunding that utilizes cryptocurrencies as a way of increasing funds for startups. Project tokens are developed and distributed to the public through these offerings as well.
Though, there are companies that are eager to increase funds from tokens, but they do not choose to utilize ICOs. Instead, they choose a TGE. What's the difference, though?
Both ICOs and TGEs are focused on a similar concept. However, because of regulatory concerns, some organizations prefer to identify their fundraising campaigns as TGEs rather than ICOs.
Regulatory organizations have been under increasing demand to recognize ICOs as the main method for issuing securities, thus, raising the prospect of taxes. Token Generation Events, on the other hand, are mostly used for issuing utility tokens, therefore, they are not taxed.
tokens/strong>/a> and adding them to the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-total-supply/">total token supply<\/strong><\/a> of a cryptocurrency. Token issuance is usually governed by complex algorithmic calculations that estimate the number of tokens required for the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain/strong>/a> ecosystem to operate effectively.<\/p>\n<p>Token issuance has many forms that depend on <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrency/strong>/a> and blockchain. Besides, note that <strong>each cryptocurrency has a different total supply of tokens<\/strong> that is also calculated using complex algorithmic calculations.<\/p>\n<p>It's essential for blockchain-based projects and cryptocurrencies to explain how their token issuing process works. For instance, the Bitcoin <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-whitepaper/">whitepaper/strong>/a> specifies that there could only ever be <strong>21 million coins<\/strong>. As a result, once the limit of 21 million tokens is achieved, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin/strong>/a> will no longer be issued. Though other cryptocurrencies have chosen not to have a supply limit.<\/p>\n<p>Token issuance can also refer to tokenization, which involves <strong>adding an asset from outside of the cryptocurrency's ecosystem to the blockchain via a crypto token<\/strong>. In such instances, token issuance becomes the process of establishing a token that represents an external asset rather than one that belongs to a coin.<\/p>\n<p>To establish agreement across the network of nodes, several consensus techniques use a combination of token issuance and token burning. <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-burning/">Token burning<\/strong><\/strong><\/a> is the polar opposite of token issuance because in this process tokens are destroyed irreversibly. <\/p>\n<p>The regulations that govern token issuance on various projects assist investors in deciding whether or not to engage in the project. Besides, these regulations might have an effect on the value of crypto assets. When the <strong>blockchain is near to exceeding its maximum supply limit<\/strong>, cryptocurrencies with a fixed maximum supply often experience price increases.<\/p>","definition":"the process of producing new tokens and adding them to a cryptocurrency's total token supply.","status":"published","meta_title":"What is Token Issuance? Definition & Meaning | Crypto Wiki","meta_description":"Token Issuance meaning: Token Issuance - the process of producing new tokens and adding them to a cryptocurrency's total token supply.","meta_keywords":null}"
:prev-section="{"id":770,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Token_economy","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-10-30T05:04:46.000000Z","slug":"what-is-token-economy","title":"What is Token Economy?","section":"T","keyword":"Token Economy","content":"<p>In the world of cryptocurrencies, the <strong>Token Economy<\/strong> refers to the economy where goods, services, and other assets have gone through the process of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-tokenize/">tokenization/strong>/a>. These tokenized assets operate on blockchain technology where the demand for a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-intermediary-middleman/">middleman/strong>/a> is successfully eliminated. <\/p>\n<p>The process is fairly straightforward. The assets are digitized and assigned ownership thus making the token, also referred to as the digital asset, only accessible to those who have been authorized to do so. Then the owner is able to participate in an exchange. <\/p>\n<p>The token economy is similar to the day-to-day interactions in the physical world except that it’s digitalized, based on <strong>assets<\/strong> that are quantifiable, governed by <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contracts<\/strong><\/a>, and protected by the <strong>science of cryptography<\/strong>. <\/p>\n<p>There are four tools that allow the management of tokens: tokenization, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-documentation/">documentation/strong>/a>, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-governance/">governance/strong>/a>, and trading.<\/p>\n<p>The tokenization process refers to taking meaningful data and turning it into a line of characters. It enables assets to be expressed as a quantity. During the process of tokenization, the basic units of measure are utilized. They include units that represent time (hours, minutes, seconds), length (meter, kilometer), mass (gram, kilogram), and others. Additionally, owners can classify their tokens as either fungible (divisible) or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">non-fungible/strong>/strong>/a> (non-divisible). Blockchain technology records and tracks each digital asset’s ownership and allows them to be securely traded.<\/p>\n<p>Adding an asset’s proof of authenticity and\/or any other relevant information on the blockchain is called documentation. The author's signature, hash key (unique identifier), and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-timestamp/">timestamp/strong>/a> are the three main proofs that show when each specific documentation happened and who prompted it. <\/p>\n<p>Smart contracts <strong>take the role of governance<\/strong> by binding specific actions to specific conditions. If these conditions are broken then the actions never see the light of day. In a way, they’re exactly like regular contracts we see every day in the real world. The main difference is that smart contracts operate on a blockchain.<\/p>\n<p>Smart contracts are utilized to establish a set of rules for trading digital assets. Furthermore, these contracts act on their own when the terms and conditions are met on the blockchain. Since they can carry out transactions without any additional prompting, it opens possibilities for saving more time and removing any intermediaries. <\/p>\n<p>Trading is an important aspect of the token economy. Blockchain technology allows anyone to turn anything into a digital asset while also providing the ability to hold all of these assets in the exact same form. It’s much more simple to trade within the virtual world than outside of it since you don’t have to worry about the logistics of how you’ll get your asset in your hands. In other words, it’s just the process of converting one value into another. If you have concerns about fraud, you can set those aside since, as mentioned above, smart contracts have the ability to make sure the transactions are not completed until every participant fulfills the pre-determined conditions. So schemes like double-spending are stopped before they can do any real damage.<\/p>","definition":"In Token Economy blockchain technology enables tokenized assets to be exchanged without interference from a third party.","status":"published","meta_title":"What is Token Economy? Definition & Meaning | Crypto Wiki","meta_description":"Token Economy meaning: Token Economy - In Token Economy blockchain technology enables tokenized assets to be exchanged without interference from a third party.","meta_keywords":null}"
:model="{"id":773,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency#Crypto_token","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-10-30T05:06:57.000000Z","slug":"what-is-token-generation-event-tge","title":"What is Token Generation Event (TGE)?","section":"T","keyword":"Token Generation Event (TGE)","content":"<p>Essentially, during a token generation event, or TGE, <strong>a cryptocurrency project issues its tokens and makes them publicly available<\/strong>. So, before you can purchase cryptocurrencies on popular exchanges like <a href=https://www.bitdegree.org/"//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a> or <a href=https://www.bitdegree.org/"//crypto//goon//bybit/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Bybit<\/strong><\/a>, you can first do that during a TGE.<\/p>\n<p><strong>A token is a virtual asset<\/strong> that is created with a utility in mind. Tokens provide a simple entry into the bigger crypto economic system. They do not have a store of value on their own but they are made in a way that software can be developed around them.<\/p>\n<p>However, there's also <strong>another widely used way of issuing and selling new tokens<\/strong> - an <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-initial-coin-offering-ico/">Initial Coin Offering (ICO)<\/strong><\/strong><\/a>. It is a type of crowdfunding that utilizes cryptocurrencies as a way of increasing funds for startups. Project tokens are developed and distributed to the public through these offerings as well.<\/p>\n<p>Though, there are companies that are eager to increase funds from tokens, but they do not choose to utilize ICOs. Instead, they choose a TGE. <strong>What's the difference, though?<\/strong><\/p>\n<p>Both ICOs and TGEs are focused on a similar concept. However, because of <strong>regulatory concerns<\/strong>, some organizations prefer to identify their fundraising campaigns as TGEs rather than ICOs.<\/p>\n<p>Regulatory organizations have been under increasing demand to recognize ICOs as the main method for issuing <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-security/">securities/strong>/a>, thus, raising the prospect of taxes. Token Generation Events, on the other hand, are mostly <strong>used for issuing utility tokens, therefore,<\/strong> <strong>they are not taxed<\/strong>.<\/p>","definition":"an event when a crypto project issues its tokens and makes them publicly available for purchasing.","status":"published","meta_title":"What is Token Generation Event (TGE)? Definition & Meaning | Crypto Wiki","meta_description":"Token Generation Event (TGE) meaning: Token Generation Event (TGE) - an event when a crypto project issues its tokens and makes them publicly available for purchasing.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
:chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming 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current-chapter="T"
current-section="what-is-token-generation-event-tge">