@gemmamartin
Yes, ecosystem tokens can face inflation if issuance outpaces adoption or if incentives rely heavily on subsidies. Evaluate token release schedules, staking rewards, and liquidity mining emissions. Compare inflation to user growth and transaction activity to determine whether new supply is absorbed by genuine demand. Inflation without utility often leads to price erosion and reduced investor confidence. Projects that mitigate inflation use mechanisms like burns, dynamic reward adjustments, or capped supply models. Sustainable tokenomics balance rewarding participants with protecting long-term scarcity and value.
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