@juliusthompson

In many cases, the size of airdrop rewards correlates with a project’s fundraising capacity, but not always directly. Well-funded projects can afford larger distributions as a marketing investment to attract users. However, overly generous airdrops can backfire by diluting token value and signaling desperation. Conversely, smaller projects often allocate fewer tokens but design smarter reward mechanisms targeting high-value contributors, like developers or testers. The key factor is alignment between funding scale, tokenomics, and long-term sustainability. Some projects intentionally cap rewards regardless of funding to preserve scarcity. Ultimately, while financing provides flexibility, the true determinant of reward size is strategic—balancing growth incentives with maintaining token utility, scarcity, and trust. Simply spending more does not guarantee effective adoption.

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