@jadlxne
Early-stage protocols often rely on token incentives to attract users, but this strategy suffers from diminishing returns. As users become mercenary, the marginal effectiveness of incentives declines. Protocols must evolve beyond giveaways toward genuine utility and network effects. For investors, heavy incentive reliance is a red flag, signaling unsustainable economics. True growth comes from product-market fit, not perpetual subsidies. Incentive exhaustion marks a maturation phase: the market is learning that tokens cannot bribe adoption indefinitely—only real value retains participants.
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