How Does a Deflationary Token Model Compare to an Inflationary One in Terms of Treasury Management?

A deflationary model (via buybacks/burns) naturally reduces circulating supply, which supports the token price and makes the native token portion of the treasury more valuable. An inflationary model (via continuous emissions) requires the treasury to work harder to maintain its value against dilution.

Inflationary models must ensure new token issuance drives sufficient utility and revenue to justify the supply increase.