Project founders are faced with a dilemma: "How can I maintain strong price action, while growing my project to its fullest potential" It all comes down to controlling supply. 🧵 A thread about incentives, the variable everyone misses, and Baseline's solution 1/17
To stimulate growth, the standard playbook for creators is to emit supply as incentives. LP incentives, bribes, points, airdrops, or another raise For exceptional projects, this is no problem. Market demand is strong enough to handle it.
But this is not always the case. Getting supply distributions right is a constant source of anxiety and headache. Luckily, DeFi has many established mechanisms to help manage this, what we lovingly call Ponzinomics. Fee shares, ve locks, buyback-and-burns, etc
These are forms of *supply control*. When supply is locked away, it can't be sold, and tokens can more easily pump It's how cabals in memecoin szn made millions It's how Curve and ve tokens have survived for 5+ years And the lack of it is the death of so many projects
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