The Inflation Game - Why Emissions-Heavy Protocols Die Before They Grow

The article discusses how DeFi protocols with high token emissions create unsustainable artificial growth through inflated yields and TVL. When emissions eventually reduce or stop, these protocols typically collapse as the underlying value was built on token incentives rather than genuine utility.

• →High-emission protocols often experience rapid TVL growth that disappears when incentives end.
• →Token emissions create artificial demand that masks lack of genuine protocol utility.
• →Early insiders typically profit while later investors become bagholders when emissions stop.
• →Unsustainable yield farming leads to inevitable protocol collapse.
• →True protocol growth should be driven by utility rather than token incentives.