Circular revenue models are just Ponzi schemes with extra steps.
They work fine until someone in the loop decides to exit scam and keep the bag.
Seen this play out too many times in DeFi protocols with unsustainable yields and token incentives that rely on new money flowing in.
Once the music stops, someone's holding worthless tokens while the insiders already cashed out.
DYOR on tokenomics. If the revenue model requires infinite growth to sustain itself, it's not a model—it's a countdown timer.
They work fine until someone in the loop decides to exit scam and keep the bag.
Seen this play out too many times in DeFi protocols with unsustainable yields and token incentives that rely on new money flowing in.
Once the music stops, someone's holding worthless tokens while the insiders already cashed out.
DYOR on tokenomics. If the revenue model requires infinite growth to sustain itself, it's not a model—it's a countdown timer.