Reward farming has become the go-to growth hack for L2s. Drop some tokens, watch the users roll in, and declare success. But if we’re being honest, short-term incentives aren’t growth—they’re just noise.

L2 protocols, it’s time to ask yourselves: Do you want hype or longevity? While you’re busy handing out free tokens, users are playing the system, your metrics are inflated, and your platform is one airdrop away from irrelevance.

It’s not too late to fix this. The real winners in this space are shifting from farming gimmicks to sustainable growth strategies—and they’re thriving.

The Numbers Nobody Wants to Talk About

Many reward-motivated users ghost your protocol faster than a bad Telegram date once the incentives dry up. And here's the real kicker: only 37% of users consider rewards effective for building loyalty.

Let that sink in. We're literally throwing money at a strategy that fails more often than not.

The Mercenary User Problem

Imagine you've just launched your revolutionary L2 solution. The tech is solid. The smart contracts are audited. The UI is chef's kiss. Then you announce your token rewards program, and suddenly, you've got more users than a free NFT mint.

Success, right? Not quite. What you've actually got is:

• Users running multiple accounts

• Discord full of "wen token" instead of actual discussion

• A community that's about as loyal as a crypto trader in a bull market

Sound familiar? Yeah, we thought so.

The "Everyone Else Is Doing It" Trap

"But everyone is offering incentives!" we hear you say. "We have to compete!"

Ah yes, the old "jump off a bridge" strategy. How's that working out for the L2 space? We've created an ecosystem where:

• Users treat protocols like daily yield farms

• Communities are as deep as a puddle in the Sahara

• Marketing teams are stuck in an incentive arms race

• Nobody's solving the actual adoption problem

Breaking Free from the Sugar Rush Economy

Nobody tells you this at those Web3 growth panels: Sustainable growth isn't about how much you can give away. It's about building something people actually need.

Think about the apps you use daily. Did they pay you to start using them? Did Gmail need to airdrop tokens to get adoption? Did WhatsApp need a reward program?

What Traditional Finance Can Teach Us

Surprisingly, TradFi can teach us a thing or two about building loyalty. Banks and financial institutions have done this for centuries without relying on gimmicks.

• Sell the value, not the giveaway: Banks don’t promise free money to lure in customers (well, not always). They market stability, trust, and the long-term value of sticking around.

• Educate first: Financial literacy programs have proven that when users understand the value of a product, they’re far more likely to stick around.

• Reward loyalty: The best rewards aren’t handed out at the door but are earned over time.

The Playbook for Sustainable L2 Growth

If you’re ready to ditch the hamster wheel of reward farming, here’s how to build something real:

1. Community over churn

Stop thinking about “users” and start thinking about communities. Forums, meetups, and shared goals create loyalty in ways tokens never will. Give people a reason to care beyond what’s in their wallets.

2. Reward the journey

Look, we're not saying never use incentives. We're saying stop using them as a crutch. Stop hoping that the next big airdrop will finally create lasting adoption. Instead, introduce tiered systems that grow with user activity. Think loyalty programs that incentivize real engagement over time, not just quick sign-ups.

3. UX is everything

Forget flashy giveaways—your user experience is the reward. Make your platform easy, intuitive, and enjoyable to use. Nothing beats a product that people actually like.

4. Become the teacher

The more users understand your platform, the more likely they will stay. Create explainer videos, tutorials, and guides that turn confusion into confidence.

5. Stand for something

Why should users choose your L2 over another? Stop copying the competition and start telling your own story. What’s your vision? Your mission? Your edge?

Time for Real Talk

In the end, the future of L2s won't be built on token bribes. It'll be built on actual value. And that's something worth investing in.

At Myosin, we've spent years helping protocols break free from the incentive treadmill. We've seen what works and what doesn't. Most importantly, we've learned that building sustainable growth isn't about how much you can give away but how much value you can create.

Ready to build something that lasts longer than your token emissions schedule? Book an intro call with us. Let's talk about growth that doesn't disappear when the rewards run out.