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In the world of blockchain and decentralized finance, the distinction between token holders and contributors is crucial. Token holders are individuals who possess and often trade the project's native cryptocurrency, while contributors are those who actively participate in the project's development and growth. Alignment between these two groups is essential for a project's success, as it ensures that all stakeholders are working towards a common goal. To achieve this, projects must create incentives that reward both groups for their respective roles, fostering a synergistic relationship that drives the project forward.
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