@penelope1

Evaluate CAC by comparing marketing and incentive spend against retained, active users rather than total signups. Incentive-driven campaigns may inflate CAC if retention collapses after rewards end. Sustainable projects keep CAC declining over time as organic referrals, network effects, and community contributions grow. Benchmark against industry peers—excessive CAC suggests misallocation. Also measure lifetime value (LTV): if LTV/CAC < 3, user economics are fragile. Transparency around campaign costs and retention metrics is key to assessing efficiency.

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