A Token Split is a corporate action in the cryptocurrency domain where the total supply of a token is increased, and its price per token is proportionally decreased, without altering the total market capitalization of the asset. This event is analogous to a traditional stock split, aiming to make individual units more accessible and liquid. It adjusts the nominal value of each token.
Mechanism
The execution of a token split typically involves a smart contract upgrade or a hard fork of the blockchain, where existing token holders automatically receive a larger quantity of new tokens based on a predetermined ratio. For instance, a 1-for-10 split would give ten new tokens for every one old token held. This adjustment is performed programmatically and is designed to be seamless for holders.
Methodology
The strategic objective of a token split is primarily to improve token liquidity and psychological affordability, making the asset more attractive to a broader base of investors. A lower per-token price can reduce perceived barriers to entry for smaller capital allocations. This methodology aims to enhance market activity and potentially increase adoption by optimizing the token’s unit economics for wider distribution.
This token split reconfigures MANTRA's asset structure, optimizing accessibility and market perception without diluting underlying value, a strategic systemic adjustment.
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