Airdrop rewards often draw participants outside the intended target audience. Many users engage solely for profit, without interest in the project’s mission or ecosystem. While this increases short-term visibility and wallet addresses, it can distort community composition. Projects must design eligibility rules carefully, such as requiring meaningful interactions or governance participation, to filter genuine users. Otherwise, opportunistic participants may dilute engagement quality and create sell pressure. Incentives linked to ecosystem activity, like staking, liquidity provision, or DApp usage, help ensure that distributed tokens reach aligned users. Airdrops therefore need to strike a balance between expanding reach and maintaining a focused, committed user base that supports long-term ecosystem development.
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Tokens that perform well in a bear market are often those tied to strong fundamentals and real utility. Stablecoin governance tokens, infrastructure plays like oracle providers, and tokens associated with liquid staking derivatives sometimes remain resilient because they capture ongoing demand regardless of broader sentiment. Niche tokens in gaming or DeFi that continue to grow user activity can also sustain appreciation. Another common factor is a low circulating supply at early stages, combined with sustained ecosystem funding. Generally, tokens with strong developer activity and clear revenue models can rise even in downturns. Investors view them as “flight to quality” assets. However, liquidity is usually thinner in a bear market, so fewer buyers can move prices significantly. Thus, resilience doesn’t necessarily mean broad adoption—it could reflect concentrated conviction from long-term holders.
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L2 fee models are likely to be a core differentiator in the long term. Low and predictable fees improve user experience, attract higher transaction volume, and make applications more viable. However, sustainability matters—extremely low fees may attract spam or compromise validator incentives, while overly high fees could push users to competing networks. The optimal fee structure balances cost efficiency with network security, validator rewards, and economic sustainability. Over time, L2s that design flexible fee systems—adjustable to market conditions, usage spikes, and security needs—may capture greater market share. Additionally, integrating value-sharing mechanisms, such as burning a portion of fees or redistributing them to token holders, could strengthen token value and foster loyalty, making the fee model not just a cost but a growth driver.
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