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How Does a High Staking APY Affect Coin Supply Inflation?

A high staking APY means a higher rate of new coin minting, directly increasing coin supply inflation, which can depress the price.
Greeks.Live29.10.25

How Does a High Staking APY Affect Coin Supply Inflation?

A high Annual Percentage Yield (APY) for staking typically means the protocol is minting and distributing a large number of new coins as rewards. This directly leads to a higher rate of coin supply inflation.

If the demand for the coin does not keep pace with this high inflation, the coin's price can suffer.

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