@pamela23

A token incentive race can emerge when multiple projects aggressively distribute rewards, encouraging opportunistic participation rather than meaningful engagement. This phenomenon risks over-inflation of tokens, reduced long-term holding, and instability in token value. Participants may prioritize short-term gains across platforms, weakening ecosystem cohesion. Effective countermeasures include implementing vesting periods, rewarding utility-driven behavior, and focusing incentives on contributions that strengthen governance, development, or community engagement. Projects that manage token incentives strategically can foster sustainable growth, minimize speculative risks, and maintain long-term user commitment while avoiding the negative consequences of an unchecked token incentive competition environment.

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