TL;DR

A Token Generation Event (TGE) is the moment a project’s token is created on a blockchain and becomes available for trading. It marks month 0 of the tokenomics timeline. At TGE, tokens with immediate unlock percentages enter circulation, establishing the initial circulating supply that determines early trading conditions.

How It Works

The Token Generation Event is the starting line for everything in a tokenomics plan. Every vesting schedule counts from TGE. Every cliff period begins at TGE. The TGE unlock percentages determine what is available at this exact moment, and everything else follows the timeline from here.

What Happens at Month 0

When the tokenomics timeline computation runs, month 0 is the TGE snapshot. At this point, the system calculates the unlocked tokens for every allocation category using each category’s TGE unlock percentage.

For categories with 0% TGE unlock (like Team and Advisors in most templates), the unlocked amount at month 0 is zero. For categories with 100% TGE unlock (like Liquidity and Public Sale), the full category allocation is immediately available. For categories with partial TGE unlocks (like Community at 15% or Private Sale at 10%), only that fraction of the category’s tokens enters circulation.

The sum of all TGE unlocked tokens across every category equals the initial circulating supply. This number becomes the circulatingSupply at month 0 in the 60-month timeline and is expressed as circulatingPct (the percentage of total supply that is circulating).

TGE as the Reference Point

Every tokenomics parameter is defined relative to TGE:

Cliff periods start counting from TGE. A 12-month cliff means tokens are locked for 12 months after TGE. No vesting occurs during this window.

Vesting durations begin after the cliff expires. A 12-month cliff with 36-month vesting means full unlock at month 48, which is 48 months after TGE.

Inflation emissions start from month 1 (the first month after TGE) if enabled. The inflationTokens function returns 0 for month 0 and begins compounding from month 1 onward.

Unlock events are tracked relative to TGE. The unlock event finder identifies significant moments where large percentages of supply become available, starting from TGE and scanning through the full 60-month timeline.

The TGE Circulating Percentage

The TGE circulating percentage is one of the most scrutinized numbers in any tokenomics plan. It tells the market exactly how much supply is available for trading on day one.

A low TGE circulating percentage (5-10%) means most tokens are locked. This creates scarcity and can drive high initial prices, but it also means thin order books and high slippage. Small trades can move the price dramatically, creating volatility that can scare away institutional participants.

A moderate TGE circulating percentage (10-25%) provides enough tokens for healthy price discovery while keeping the majority of supply locked. This is the range most established projects target. The Standard DeFi template produces roughly 17.5% TGE circulating supply.

A high TGE circulating percentage (30%+) floods the market with supply at launch. While this provides deep liquidity, it also means a large number of holders can sell immediately. Fair launch models intentionally have high TGE circulation (the Fair Launch template unlocks over 50% at TGE) because their philosophy is maximum immediate distribution.

TGE and Risk Assessment

The TGE circulating percentage feeds directly into risk scoring through the TGE Circulating factor, which carries a 15% weight. Higher TGE circulating percentages increase this risk factor because more tradeable supply at launch means more potential sell pressure.

Separately, the Insider TGE Unlock factor (25% weight) measures specifically how much insider supply (Team, Advisors, Private Sale) is available at TGE. This factor has the highest weight in the risk model because insider selling at launch is one of the most damaging events for a token’s early price trajectory and community trust.

The combination of these two factors means that TGE decisions carry 40% of the total risk score weight. Getting the TGE right is arguably the single most important decision in tokenomics design.

Before and After TGE

Before TGE, the token does not exist on-chain. All tokenomics parameters are plans and commitments documented in whitepapers, investor agreements, and smart contract code that has been deployed but not yet activated.

At TGE, the token smart contract is deployed (or activated), the total supply is minted, and tokens are distributed to initial wallets according to the allocation plan. Vesting contracts begin enforcing their schedules. Liquidity pool tokens are deposited into DEX pools, enabling the first market trades.

After TGE, the tokenomics plan executes automatically through smart contracts. Cliff periods count down, vesting releases occur on schedule, and the circulating supply grows according to the predetermined timeline. The project team can track this progression month by month, comparing actual circulating supply against the planned timeline.

How TGE Differs from IDO, ICO, and IEO

The token generation event is the broader term for the moment the token comes into existence. It encompasses all distribution methods:

ICO (Initial Coin Offering) is a specific fundraising mechanism where tokens are sold directly to investors, often before the token is live. The TGE typically follows the ICO when the token is actually deployed.

IDO (Initial DEX Offering) is a launch event where the token is first made available on a decentralized exchange. The IDO and TGE often coincide, as the token is created and immediately listed.

IEO (Initial Exchange Offering) is a launch conducted through a centralized exchange. The exchange handles the sale and listing, and the TGE may coincide with or precede the IEO.

In all cases, the TGE is the common starting point. The tokenomics timeline begins here, regardless of which specific launch mechanism was used.

Try It Yourself

Configure your TGE unlock percentages across all allocation categories and see the month-0 circulating supply snapshot. The designer shows your TGE circulating percentage and risk score immediately. Try the Tokenomics Designer →

Related Concepts

• TGE Unlock: The percentage parameter that controls how many tokens in each category are available at the Token Generation Event.
• Circulating Supply: Starts at the TGE circulating amount and grows as vesting schedules release tokens over the following months.
• Token Allocation: The percentage split across categories that determines the total token pool for each group, from which TGE unlocks are calculated.

Frequently Asked Questions

What is the difference between a TGE and an ICO?

A TGE refers specifically to the technical event of creating and distributing tokens, while an ICO (Initial Coin Offering) is a fundraising method where tokens are sold to investors. A project can have a TGE without an ICO, such as in a fair launch where tokens are distributed through airdrops or liquidity mining rather than sold. The TGE is the broader term that encompasses any method of initial token distribution, while ICOs are one specific mechanism for that distribution.

What happens on-chain at a TGE?

At a TGE, the token’s smart contract is deployed to a blockchain, creating the total supply. Tokens are then distributed to the designated wallets according to the allocation plan. Categories with TGE unlock percentages receive their immediately available tokens, while the rest are held by vesting contracts that enforce the cliff and vesting schedules. Liquidity pool tokens are paired with a base asset and deposited into decentralized exchange pools, enabling the first trades.

How does TGE affect token price?

The TGE establishes the token’s initial market price through the interaction of circulating supply and demand. A lower TGE circulating supply means fewer tokens available for trading, which can lead to higher initial prices but also greater volatility due to thin order books. A higher TGE circulating supply provides more liquidity and stability but may result in lower initial prices. The balance of TGE unlock percentages across categories directly shapes these first-day trading dynamics.

Can a project have multiple TGEs?

No, a project has one TGE. It is a one-time event that creates the token’s total supply. After TGE, additional tokens can enter circulation through vesting unlocks or inflation emissions, but these are scheduled releases from the existing supply plan, not new generation events. Some projects deploy to multiple blockchains, but the initial token creation and supply definition happens once, even if bridged versions appear on other chains later.

What should a project prepare before TGE?

Before TGE, a project should have a finalized tokenomics plan covering allocation percentages, vesting schedules, cliff periods, and TGE unlock settings for every category. Smart contracts for token creation, vesting, and liquidity provisioning need to be audited. Exchange listings or DEX pool configurations should be ready. The team should also have a clear launch-day communication plan, since the TGE is typically the most watched event in a project’s lifecycle and sets the tone for market confidence.

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