Token generation event (TGE)

How it works

A TGE deploys the token contract, mints the supply according to the allocation table, seeds the launch liquidity pool, and configures any vesting contracts. On EVM chains, the deployed ERC-20 contract defines the rules the market operates within for the token's entire life.

The launch price is set by the liquidity the project adds to the pool, so the liquidity deposit itself is a price-setting act. Every upstream decision, in the whitepaper, seed rounds, or community sale, lands at the TGE as a consequence that cannot be walked back.

Design consequence

The factor most projects underweight is irreversibility. A vesting schedule that unlocks too fast in month three will crush the price in month three regardless of narrative. A float that launches too large depresses price even with strong demand. A pool seeded too thin gets exploited by bots within blocks.

Example

A project seeds $500K into a pool on a $50M fully diluted valuation, a 1% liquidity ratio. A $50K market buy then moves the price roughly 10%. If the public allocation sold at a 30% discount to TGE price, early buyers hold 30% upside on day one and the sell pressure is immediate and predictable. The design built that outcome before launch day.

Common mistake

Teams treat the TGE as the finish line rather than the starting gun. Those who spend more time on TGE narrative than TGE mechanics consistently launch into price collapse, because mechanics decide what happens in the first 48 hours. Pre-TGE simulation, float decomposition, and pool stress-testing are not optional.