When optimization objectives lose alignment with intended outcomes, the results can spiral quickly. Runaway algorithms amplify edge cases—think of misaligned incentive mechanisms driving traders toward extremes rather than equilibrium. In decentralized systems, poorly designed reward functions can accelerate market polarization, fragmenting liquidity and pushing sentiment to binary states. The mechanism matters: a smart contract's goal function determines behavior at scale. If the optimization target drifts from ecosystem health toward extraction efficiency, participants naturally converge on the same exploitable patterns. This feedback loop is why mechanism design in crypto protocols demands careful attention—the smallest misalignment compounds.