Solana co-founder Toly has outlined an optimal capital formation strategy for early-stage startups, emphasizing the importance of well-designed mechanisms. Toly suggests that projects should implement staking mechanisms for long-term holders and release over 20% of tokens on the Token Generation Event (TGE) day. He advises against involving investors, but if necessary, recommends a full 100% unlock one year post-TGE. Toly argues that neither the team nor investors should unlock tokens on the TGE day. Instead, token distribution should be conducted through airdrops to core users or fair auctions. Although a one-year lockup followed by a mass unlock may appear daunting, Toly believes the market can absorb known information effectively. This lockup period allows the secondary market to reprice between sellers and buyers, while staking mechanisms continue to incentivize long-term holders, akin to early-stage funding returns.