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How Does Staking Relate to the Monetary Policy of a Cryptocurrency?

Staking rewards are a key part of a PoS coin's monetary policy, determining the inflation rate and new token distribution.
Greeks.Live29.10.25

How Does Staking Relate to the Monetary Policy of a Cryptocurrency?

Staking is integral to a PoS coin's monetary policy as it dictates the inflation rate and the distribution of new tokens. The staking reward rate determines how many new coins are minted and released into circulation.

This inflation is a cost to non-stakers but an incentive for network participation, balancing supply and demand dynamics.

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