@bess323
Token distribution design critically impacts whether the “bad money drives out good money” phenomenon occurs. If tokens are easily tradable and highly liquid at launch, opportunistic actors may dominate, selling quickly and discouraging committed participants. To counter this, projects often introduce vesting schedules, performance-based rewards, and governance-linked allocations to prioritize users who add meaningful value. Such structures balance liquidity with engagement, ensuring that committed contributors remain invested in the ecosystem. By aligning distribution with participation quality, projects prevent speculation-driven dynamics from undermining long-term sustainability and preserve a stable, productive token community.
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