@juli

Price itself can influence fundamentals: Rising prices can attract attention, liquidity, builders, users, media coverage. This can strengthen the economy and create a stronger long-term floor if value is captured and reallocated effectively. Negative reflexivity can work in reverse in systems overly dependent on speculative demand. Well-managed token economies use positive reflexive periods to strengthen fundamentals, expand participation, and build resilience for and through downturns. -- Interestingly, a few teams have been smart about cashing in on hypes but almost none have managed to build resilience for the expected downturn and lost their supporter base again. Not possible to avoid downturns but building resilience and keeping adopters around is doable and important to grow through boom and bust cycles.

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