The new investment in Coinbase by Monad is sure to oversubscribe (187.5 million). How will the oversubscription be allocated? A simple explanation

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The overall idea is to take care of small investors. Let AI explain the specific rules, which is quite interesting and better than equal distribution.

Imagine everyone is queuing up to eat (as shown), but each person's bowl (corresponding amount) is different. For example: a total of 4 people participate in the ICO, A contributes 100u, B contributes 300u, C contributes 500u, and D contributes 1000u. The total amount is 1200u.

First round distribution - starting from the smallest amount

The project party fills each of ABCD with 100u of food, totaling 400u. Then A happily leaves, receiving the expected 100% allocation.

Second round distribution - 800u still remains

Remaining are BCD, who need 200, 400, and 900u respectively.

At this point, the project party again fills the three with 200u of food each, totaling 600u. Thus, B also happily leaves, receiving the expected 100% allocation.

Third round distribution - 200u still remains

Remaining are CD, who need 200 and 700u respectively.

If we continue to distribute according to the above logic, we would need 200×2. But it's already insufficient. So the project party divides the remaining 200u evenly between C and D, each receiving 100u.

Therefore, C and D will both receive a total of 100+200+100 = 400u allocation.

In the end, the allocation results for $MON are as follows

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A receives 100u (expected 100%)

B receives 300u (expected 100%)

C receives 400u (expected 80%)

D receives 400u (expected 40%)

So under this rule, it is friendlier to small investors. The larger the amount, the lower the final allocation ratio (but the specific amount is still quite good).