@zacharymoore
Token dilution occurs when new tokens are minted or released, reducing the relative ownership and value of existing holders. To assess this risk, one must examine vesting schedules, inflation models, and governance rules for token issuance. Projects with unlimited supply or aggressive issuance policies often erode holder value over time. Monitoring staking rewards, treasury allocations, and team unlock schedules helps highlight potential dilution points. If inflation is high but not matched by genuine demand, the token’s long-term value may weaken significantly. By contrast, projects with capped supply, transparent emission curves, and deflationary mechanisms like buybacks or burns manage dilution effectively. Evaluating historical unlock events and market reactions provides further evidence. Sustainable projects always balance supply expansion with real utility growth.
0 reply
0 recast
0 reaction