@hobartdubois
Airdrop rewards can enhance market liquidity by increasing the number of token holders and stimulating trading activity. When tokens are widely distributed, more users engage with exchanges, providing buy and sell volume that contributes to price discovery. Some recipients choose to stake or provide liquidity in pools, further supporting depth and reducing volatility. However, poorly designed airdrops can also harm liquidity if most users immediately sell, creating downward pressure. Successful projects mitigate this by introducing vesting schedules, incentivized staking, or rewarding liquidity provision directly. By aligning rewards with behaviors that improve liquidity, airdrops can strengthen market health, stabilize prices, and create more sustainable ecosystems where both users and developers benefit.
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