Token generation event, which is expressed in Turkish as the activity of generation tokens, refers to the time interval in which a token is issued. The token generation event is the process of releasing tokens that have been developed on a blockchain network associated with decentralized applications (dapps) by a dapp developer.
In other words, the process of releasing a token by dapp developers within a specific time interval is referred to as a token generation event or TGE.
The process of token issuance is called token generation activity (TGE), which plays an important role in the growth strategies of enterprises. In this process, enterprises produce tokens for their own blockchain projects and raise capital by offering these tokens to investors. However, tokens only constitute a small portion of the final product, and the TGE process provides a tool for investors to support an enterprise rather than purchasing a specific product.
TGE is a significant milestone for an enterprise as it plays a critical role in the fundraising process and contributes to the growth of the enterprise.
What Are Tokens and Coins?
To understand what a token generation event is, it is necessary to first understand tokens and coins.
A coin is a digital asset or currency held digitally on a blockchain network. Coins can be securely and transparently transferred and stored using blockchain technology. Therefore, coins can be used as an alternative to traditional currencies and offer an option for those who want to exchange digital assets.
Each coin typically has its own characteristics and is used for different purposes. For example, some coins are used for payment transactions while others can be used as a transaction fee for decentralized applications.
On the other hand, a token is a digital asset created using blockchain technology and a smart contract system. A token can exist on a blockchain network and is often confused with a cryptocurrency or coin, but unlike cryptocurrencies, tokens do not have their own blockchain networks and often operate on another blockchain network.
Tokens are typically developed to serve a specific purpose and can serve different purposes such as providing funding for a project, promoting the use of a service, or representing ownership of an asset. Tokens can be securely and transparently transferred and stored on a blockchain network. Additionally, tokens of different projects may have different features, and these features can determine the use and value of the tokens.
Coins are used as a currency on their independent blockchain networks, while tokens represent ownership of a project or an entity.
What Are TGE and ICO and What Is the Difference Between Them?
Projects use various methods to distribute their tokens to the public. Although ICOs and TGEs are similar in terms of their end result, the process and conditions may be different.
Fundamentally, an initial coin offering (ICO) refers to tokens offered for sale at a specific price to initial investors in order to provide financing to a company or project. However, a token generation event (TGE) only represents the process of creating and distributing a project's tokens.
In some projects, TGE and ICO mechanisms can be used simultaneously.
