The Dolomite ecosystem has launched a series of incentives through its Token DOLO, aimed at attracting users to participate and enhancing platform activity. This strategy has indeed achieved significant results in the short term, with a substantial increase in user participation. Dolomite also employs a transparent data tracking and rewards distribution system, allowing users to clearly understand the value of their participation.

However, this incentive mechanism also faces some challenges. First, it may attract a large number of speculators who only focus on short-term benefits, and these users may lack long-term contributions to the ecosystem. Second, once the incentive program ends, the platform's activity may decline rapidly, which could pose a threat to the long-term development of Dolomite. In addition, the volatility of the DOLO Token price may lead users to focus excessively on short-term gains, neglecting the platform's long-term value.

In terms of governance, if Dolomite cannot ensure that participants' long-term interests align with the platform's goals, it may affect the degree of decentralization and the quality of decision-making of the protocol. Therefore, the main challenge faced by Dolomite is how to design an incentive mechanism that can balance short-term attractiveness and long-term stability.

To address these challenges, Dolomite could consider the following measures: introduce long-term holding rewards to encourage users to participate for the long term; design a tiered incentive mechanism that provides more benefits as user participation increases; strengthen community education to help users understand the long-term value of the platform; optimize governance mechanisms to ensure that the decision-making process fully considers long-term development needs.

Overall, Dolomite's Token incentive mechanism reflects the dilemma commonly faced by cryptocurrency projects: how to attract user participation while establishing a sustainable ecosystem. Dolomite's experience provides valuable insights for the entire industry, while also highlighting the importance of designing effective and sustainable token economic models.