@orlena45345

Distribution mismanagement can exacerbate the “bad money drives out good money” effect in token ecosystems. When opportunistic actors receive disproportionate allocations, they may dominate trading activity and destabilize markets. Long-term contributors might exit or reduce participation if they perceive inequity, weakening the ecosystem’s foundation. Projects mitigate this risk through strategic distribution planning, including gradual vesting, merit-based allocation, and incentive programs tied to engagement. This ensures that tokens flow to users who actively support the ecosystem rather than opportunistic short-term actors. Properly executed, distribution policies maintain network integrity, reward meaningful contributions, and foster a stable and loyal token community.

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