@faithewylde

Airdrops often trigger short-term sell pressure as recipients may view the tokens as free money and liquidate immediately. This can lead to sharp price drops, especially if the project lacks strong utility or liquidity. However, well-designed tokenomics can mitigate this effect. For example, implementing vesting schedules, partial lock-ups, or rewarding long-term staking reduces instant dumping. Additionally, aligning airdrops with governance rights or future ecosystem benefits incentivizes holding rather than selling. Projects that target active contributors or technical users instead of random wallets also see lower dumping ratios, as engaged participants are more invested in long-term success. While initial volatility is almost unavoidable, thoughtful airdrop design can transform short-term pressure into sustainable growth by rewarding loyalty and discouraging speculative behavior.

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