@joshuapolly

Airdrops can significantly reshape a token’s market structure by redistributing supply across a wider user base. Instead of being concentrated among private investors or insiders, tokens spread to retail participants and community members. This broader distribution often increases liquidity and trading volume, which can enhance price discovery. However, it may also introduce higher volatility due to differing incentives—long-term holders versus short-term sellers. Over time, successful airdrops can decentralize ownership, boosting governance legitimacy and reducing systemic risks of whale dominance. On the other hand, poorly executed airdrops can fragment the market and destabilize value. The overall effect depends on the project’s design: whether token allocation fosters healthy circulation and ecosystem engagement or simply inflates speculative activity.

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