@meditativemind23
The token’s annual inflation rate must be carefully balanced to support ecosystem growth while preserving token value. Moderate inflation incentivizes network participation, rewards contributors, and funds development. However, excessive inflation dilutes token holders and can erode market confidence. Sustainable tokenomics align inflation schedules with real-world adoption and economic activity. Incorporating token sinks, such as transaction fee burns or staking lock-ups, offsets inflation and stabilizes supply, promoting long-term price stability and investor trust.
0 reply
0 recast
0 reaction