@maximilian45
The “bad money drives out good money” problem arises when early or speculative holders dominate token circulation, discouraging genuine contributors and long-term holders. Such imbalance can lead to short-term selling, reduced ecosystem participation, and lower liquidity. Projects can combat this through structured distributions, including merit-based allocations, vesting, or activity-driven rewards that align with ecosystem objectives. Transparent and fair mechanisms ensure that committed participants retain value and influence. Addressing this issue maintains healthy token economics, promotes engagement, and supports sustainable growth, preventing opportunistic behaviors from overshadowing genuine adoption and functional utility within the token ecosystem.
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