@maximilianex7
The “Real Yield” narrative in DeFi promised sustainable rewards based on actual protocol revenue, but as this model collapses, projects resort to token emissions to pay out “real” returns. This creates a circular dependency, where new investors fund existing payouts, resembling a Ponzi scheme. As inflation dilutes token value, trust erodes, leading to inevitable collapse. Unless protocols develop organic revenue streams from fees and services, rather than relying on token issuance, this cycle cannot last. Sustainable DeFi must prioritize genuine utility, reducing dependence on inflationary rewards.
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