@emmanuel44
A “bad money drives out good money” effect emerges when token allocation favors opportunistic holders, diminishing value for genuine users. Concentrated or speculative holdings can prompt rapid selling, reduce ecosystem trust, and discourage meaningful participation. Projects can prevent this by employing fair distribution methods, such as staking-based allocations, contribution-based rewards, or gradual unlocking schedules. Transparent mechanisms help ensure that active participants retain influence and value, while opportunistic behavior is minimized. By designing thoughtful token distribution, projects promote long-term engagement, sustainable liquidity, and equitable growth, reducing the risk that short-term, self-interested actions dominate token circulation at the expense of committed ecosystem contributors.
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