@walton21

The phenomenon of token incentive races occurs when projects excessively compete for users by offering high rewards, often at the expense of token economics and sustainability. This can lead to inflation, speculative behavior, and short-term retention without meaningful ecosystem contribution. Users may prioritize earning over participation, governance, or long-term holding. To mitigate these risks, projects should adopt carefully structured incentives, including tiered rewards, vesting schedules, or utility-based rewards, ensuring that token distribution aligns with strategic goals. By balancing competitive incentives with sustainable economic design, ecosystems can maintain engagement, encourage genuine contributions, and prevent token devaluation due to excessive or poorly targeted reward programs.

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