"The crypto ethos often aspires to diverge from legacy finance, with many crypto projects creating a fixed supply of tokens in an attempt to mimic the “sound money” principles of assets like Bitcoin. The downside is, this requires them to try to predict the lifetime requirement of their token allocations before the project is even launched. Conversely, traditional corporations employ ongoing share issuance which allows them to adjust decision-making power as the situation evolves. Since these companies are also successful at simultaneously having their shares represent financial value and decision-making power, perhaps there is still a lesson to be learned from them. It would seem irrational for a traditional company to start with all their shares allocated for the next decade, so why is this considered the norm for crypto projects?"

Never thought about it. Even on private markets, startups issue more shares and dilute the early investors. I imagine that crypto projects might lean into fixed supply because this is what makes early investors and founders happy - they won't be diluted, and often they can even stake unvested tokens, and their staking rewards are later being dumped during the TGE to secure the profit.