@bernardocasey

Dilution risk arises when high inflation or frequent fundraising increases circulating supply without proportional demand growth. Examine tokenomics—vesting schedules, emission rates, and treasury unlocks. Frequent airdrops or excessive incentives can erode value. Transparent schedules and capped supplies lower dilution threats, while perpetual emissions increase them. Compare projected supply expansion against expected usage growth to see if demand will outpace dilution. Investors must confirm whether token scarcity is protected, ensuring long-term sustainability rather than temporary hype-driven value.

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