@dominicsawyer
Many projects specifically target liquidity providers for airdrop rewards, recognizing their vital role in ensuring market depth and token usability. Liquidity providers contribute capital and stability, which directly supports healthy trading environments. By incentivizing them with airdrops, projects not only strengthen token liquidity but also encourage long-term alignment with the ecosystem. Some protocols design distribution models where rewards scale with the size or duration of liquidity provided, ensuring proportional benefits. However, this approach can sometimes favor large capital holders, raising concerns about fairness. To mitigate such risks, some projects apply caps or tiered systems. Overall, rewarding liquidity providers through airdrops reinforces sustainable market infrastructure while fostering user loyalty and ecosystem resilience.
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