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The Importance of Balancing Token Incentives with Product-Market Fit in DeFi Launches

Launching a token can be a complex process, as it can attract both early adopters and opportunistic investors. This can be problematic if the tokens also serve as a voting mechanism for the project's future. To ensure product-market fit, data can be used to understand user trends and identify potential farming.

However, there is an ontological concern about what a token represents, as it can signify both ownership of the protocol and a financial vehicle correlated to its success. The success of a token launch depends on various factors, and projects should take a slow and careful approach when experimenting with tokenomics to maximize their potential.

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