What Is the Difference between Deflationary and Inflationary Tokenomics?
Deflationary tokenomics features mechanisms that reduce the total supply over time, aiming for scarcity and potential value appreciation. Inflationary tokenomics features continuous creation of new tokens, often as block rewards, leading to an increasing supply.
Inflationary models typically rely on high demand to offset supply growth.
Glossar
Tokenomics Features
Framework ⎊ Tokenomics features, within cryptocurrency, options trading, and financial derivatives, represent the integrated design of economic incentives and mechanisms governing a token's lifecycle.
Inflationary Models
Design ⎊ Inflationary Model describes a tokenomic structure where the total supply of a cryptocurrency token continuously increases over time.
Inflationary Tokenomics
Model ⎊ Inflationary Tokenomics describes an economic model where the total supply of a token is designed to increase over time, often to fund network security through issuance rewards or to manage the stability of a collateral-backed system.