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How Do Staking Rewards Contribute to a Token’s Inflation Rate?

Staking rewards are newly minted tokens, increasing supply and contributing to the token's inflation rate.
Greeks.Live17.11.25

How Do Staking Rewards Contribute to a Token’s Inflation Rate?

Staking rewards are new tokens minted and distributed to users who lock up their tokens to secure the network or provide liquidity. This process increases the total and circulating supply, thus contributing directly to the token's inflation rate, which must be offset by utility or burn mechanisms.

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