@erskine757

Poorly structured token distribution risks creating the “bad money drives out good money” scenario, where short-term opportunists dominate supply and long-term stakeholders are marginalized. If early allocations or airdrops favor easily tradable tokens, committed users may sell their holdings, reducing ecosystem loyalty. Projects can counteract this effect through vesting periods, performance-linked incentives, and community-based allocations that reward active participation. By ensuring that token distribution aligns with contribution and engagement, projects maintain a balance between liquidity and commitment, preventing the erosion of long-term value and discouraging speculative dominance over meaningful ecosystem activity.

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