Definition ∞ Trading rewards are incentives offered to users for participating in trading activities on cryptocurrency exchanges or decentralized finance platforms. These rewards often take the form of native tokens, reduced fees, or other benefits, designed to encourage liquidity provision and increased trading volume. The goal is to bootstrap market activity and attract users to a specific platform. Such rewards are a common marketing strategy.
Context ∞ The discussion around trading rewards frequently concerns their sustainability and their impact on genuine market activity versus artificial volume. A key debate involves whether these incentives lead to long-term user retention or merely attract mercenary capital. A critical future development to watch for is the evolution of more sophisticated and value-aligned reward mechanisms that promote organic growth and contribute to the long-term health of digital asset ecosystems.
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