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Lesson 6 of 8

Is it bad if an exchange mandates price floors or user acquisition targets?

Price floors are generally problematic. They distort incentives and shift market risk onto the issuer, often pressuring teams to deploy treasury capital to defend artificial thresholds. Token price is market-driven; tying commercial terms to price maintenance introduces structural misalignment.

User acquisition targets are more nuanced. If transparently defined and aligned with genuine onboarding, they can support growth. However, aggressive or vaguely structured targets can encourage inorganic incentives and short-term metric inflation.

Any performance-based condition should reinforce long-term market integrity — not create pressure to manufacture outcomes.

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