@roger9745

Token distribution can exhibit a “bad money drives out good money” effect if poorly designed. For example, over-rewarding speculative or short-term participants may encourage opportunistic behavior, pushing long-term holders to exit. When low-quality participants dominate early allocations, high-quality contributors may feel undervalued and disengage, reducing overall ecosystem productivity. To avoid this, projects often implement tiered distribution strategies, vesting schedules, and performance-based incentives that prioritize active and committed users. Properly managed, distribution encourages healthy participation, mitigates speculative pressure, and ensures that tokens flow to contributors who strengthen the ecosystem rather than eroding value through opportunistic behavior.

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