@leith225

Token incentive competition is a common risk in ecosystems where rewards are the primary driver of participation. Excessive focus on token distribution can lead to short-term spikes in engagement but long-term instability, including reduced token value, opportunistic behavior, and low-quality contributions. When users chase incentives rather than participate meaningfully, ecosystem health suffers. Projects should design balanced incentive structures that reward utility, engagement, and retention rather than mere token acquisition. Strategies such as vesting, tiered rewards, or activity-based incentives help maintain value alignment and discourage unsustainable competition. By managing incentive programs carefully, projects can support healthy participation, maintain token stability, and cultivate genuine community growth over time.

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