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Liquidity Mining Attracts Investment and Efficiency
The less mining machines are online, the lower the mining difficulty, therefore leading to fast increases in the circulation supply
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Liquidity inner mining
Proof of Work systems currently in place will continue for the foreseeable future, and electricity will become more available and inexpensive in the future.
Liquidity mining is a tool to extract value from the Ecosystem
Stake mining is far more reliable since it doesn't require a significant amount of fixed costs in the form of mining rigs. The energy usage in Proof of Stake is far lower than Proof of Work, even if renewable energy is utilized in Proof of Work.
Mining is one of the most mature industries within crypto. Large players currently have the infrastructure in place to effectively mine, while new entrants will have to deal with large up front costs.
Completely agree
Prices of electricity will likely fall, keeping POW relevant and important
Liquidity misaligns incentives by providing a governance token to those who are looking for a quick flip. More over, liquidity mining rewards those who have the most capital to mine with, not those who are the most competent protocol governors.
Liquidity mining is one tool to bootstrap user growth. It clearly is a useful tactic and is similar to early user incentive programs traditional companies provide.