Most reward systems fall into the same trap—distribute tokens widely enough and suddenly they become worthless noise. Everyone earns them, nobody cares about them.

But what if the game worked differently? What if your actual choices, your strategic timing, and your mental resilience under market pressure directly shaped what you earned? That's the core shift happening with merit-based token mechanics in newer projects.

Instead of passive distribution, tie rewards to real participation metrics and survival instincts. Your entry point matters. Your exit strategy matters. Your ability to hold through volatility matters. When participation becomes the actual variable determining returns, every token feels earned rather than given away.

This is how you rebuild scarcity and meaning into incentive structures—stop broadcasting rewards to everyone and start distributing them to those who actually demonstrate commitment.