Premining

Premining is the process where developers mine or allocate a portion of a cryptocurrency's total supply before its public launch. This is often done to reward early contributors, fund development, or attract investors. While premining can help a project by ensuring initial funding and development support, it can also lead to controversy. Critics argue that it centralizes the supply and gives early stakeholders disproportionate control. Transparency and clear communication about the premining process are crucial to maintain community trust and prevent potential negative perceptions of unfair distribution.