@chesternoah

Single-source dependence increases financial risk and vulnerability to market shifts. Evaluate revenue streams, including transaction fees, subscriptions, partnerships, staking, or external funding. Examine historical income reports, treasury allocations, and on-chain inflows. Diversified revenue indicates resilience, while reliance on one source, such as transaction fees from a single DEX pool or grant funding, may threaten sustainability if conditions change. Projects with multiple monetization channels are better positioned to maintain operations, support development, and reward token holders during market fluctuations. Identifying diversification early helps investors assess long-term risk exposure.

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