LeoGlossary: Founders Stake

The stake that founder (s) of a project give to themselves.

In the traditional technology realm, this can get diluted if companies go after venture capital funding. The different rounds of seed money raised alter the ownership make up of the company.

Many cryptocurrency projects and blockchains have large Founders Stakes that alter the governance of the system.

This can often be a barrier to decentralization and getting adequate coin or token distribution.

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