Ready to Launch Your Token?
Get expert guidance on launching your token with SEC-compliant structure.
Complete Guide
Quick Answer
Launching a token requires: Legal analysis (Howey Test — is it a security?), Tokenomics design (supply, distribution, vesting, emission), Smart contract development (ERC-20 + features, audit), Distribution (team vesting, investor contracts, treasury), and Initial liquidity (DEX listing, liquidity mining). Minimum float at launch: 10-25% of total supply.
Step 1: Legal Analysis — Is Your Token a Security? (Week 1–3, Legal Counsel Required)
The Howey Test (SEC v. W.J. Howey Co., 1946) determines if your token is a security: Is there (1) an investment of money (2) in a common enterprise (3) with expectation of profits (4) primarily from the efforts of others?
If yes to all four: your token is likely a security. Securities must be registered with the SEC or issued under an exemption.
If your token is a security: Issue under Regulation D (accredited investors only), Regulation A+ (up to $75M, any investor), or Regulation CF (up to $5M, any investor via portal). Engage securities counsel before any public announcement.
If your token is genuinely a utility token: Still consult securities counsel. The SEC has taken the position that many "utility tokens" are in fact securities. The utility claim does not create legal safety — the substance of the offering does.
Step 2: Tokenomics Design (Weeks 2–6)
Key design decisions: total supply, team/investor/community allocation, vesting schedules, emission schedule (for inflationary tokens), governance mechanism, burn/sink mechanism.
Output: Protocol Economics Document — quantitative model with stress tests.
Step 3: Smart Contract Development (Weeks 4–12)
ERC-20 base + your specific features: vesting contracts, governance integration, staking, burn functions.
Test coverage: 95%+ line coverage. Fuzz testing on all arithmetic functions.
Step 4: Security Audit (Weeks 10–14)
Independent external audit. No exceptions for tokens that will hold any real value.
Step 5: Token Distribution (Week 16)
Deploy to mainnet. Distribute to team (locked vesting contract), investors (separate vesting contracts per investor with their specific terms), treasury (Gnosis Safe multi-sig), and community allocation (airdrop or sale).
Step 6: Initial Liquidity (Week 16+)
DEX listing: Create a Uniswap V3 pool with an initial price range. Seed liquidity from treasury allocation. Price discovery begins immediately.
CEX listing: Apply to centralized exchanges. Most exchanges require: 6+ months of existence, established community, audit report, $500K+ in DEX liquidity. Initial DEX liquidity must precede meaningful CEX discussions.
Liquidity mining: Incentivize external LPs to provide liquidity with token rewards. Standard first 90 days strategy.