What Are the Risks of Using a Variable Token Supply Model? ⎊ Path

What Are the Risks of Using a Variable Token Supply Model?

A variable supply model (inflationary or deflationary) introduces complexity to the tokenomics, which can increase regulatory scrutiny. If the supply changes are managed by a central entity and are designed to drive price appreciation, it strengthens the security argument.

Uncontrolled inflation can also lead to investor loss and potential claims of misrepresentation.

How Does a High Staking APY Affect Coin Supply Inflation?

How Does the Inflation Rate of a Token Impact the Real Return from Staking Rewards?

What Does “Scope Creep” Mean in Project Development and How Does It Affect the Roadmap?

How Do Staking Rewards and Inflation Dilute or Enhance the “Cash Flow” in a DCF Model?

How Does Token Inflation Affect the Relationship between Circulating and Total Supply?

How Does a High Token Inflation Rate Affect the Value of a Cryptocurrency?

What Are the Trade-Offs of Using a Centralized Sequencer for Transaction Ordering?

How Does a token’S Inflation Rate Affect the Revenue Model’s Sustainability?

Glossar

Variable Token Supply

Mechanism ⎊ Variable Token Supply refers to a digital asset's issuance model where the total circulating quantity can change over time, governed by a pre-defined smart contract Mechanism or decentralized governance vote.

Variable Supply

Definition ⎊ Variable supply refers to a cryptocurrency's monetary policy where the total circulating supply changes over time based on specific protocol rules or market conditions.