@sadgsrd
When token incentives become overly competitive, ecosystems risk losing balance between growth and sustainability. Excessive airdrops, high-yield farming, or reward-heavy mechanics often attract users more interested in extraction than contribution. This weakens community cohesion, as participants chase rewards without building lasting value. Inflationary pressure from constant giveaways also reduces long-term token appeal. Smart projects counteract this by tying rewards to meaningful contributions, such as governance participation, developer engagement, or cross-platform integrations. By aligning incentives with productivity, they reduce the likelihood of overcompetition. Ultimately, sustainable ecosystems require measured incentives that reinforce genuine usage rather than encourage endless cycles of reward chasing.
0 reply
0 recast
0 reaction