premined

Premine refers to a cryptocurrency in which part of the total supply is created or allocated before the project is publicly released. In such cases, coins are assigned to addresses controlled by founders, developers, or an issuing organization prior to, or alongside, the genesis block. The premine portion is typically intended to fund development, operations, marketing, or a treasury and may be described in the project's whitepaper or disclosures.

Implementation can vary: the premine may appear as a block reward allocated at genesis, as a separate allocation to specific addresses, or as a funded treasury that governs future issuance. Some projects disclose the amount and intended use, while others have been criticized for lack of transparency.

Proponents argue that a premine provides essential funding for early-stage development, security audits, and ecosystem growth, enabling professional teams to recruit talent and sustain ongoing improvements before a grassroots mining base is established. Critics, however, view premine as a centralization risk, undermining fair distribution, and potentially enabling price manipulation or governance influence by a small group. It can also affect market perception and regulatory scrutiny.

As an alternative, some projects pursue a fair launch or transparent treasury models, in which no premine exists and funding is sourced through open mining or predictable, community-driven mechanisms.

Notable debates surrounding premine focus on the trade-off between early funding and decentralization, and on the clarity of disclosure to investors and users.