An allocation is an allotment of tokens or equity that is purchased, earned, or reserved for a specific investor, team, organization, or corresponding entity.
Understanding the Term
Allocation is the process of proportionally allotting portions of cryptocurrency portfolio assets. In other words, it is the act of distributing equity or crypto assets that can be earned, bought, or reserved to a certain entity.
It is not unusual for blockchain startups to give early team members a specific token allocation, with the stipulation that they cannot sell their tokens for a few years.
Blockchain projects often set up their own treasuries and foundations with allocated tokens.