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What Is the Role of Transaction Fees in a Deflationary Staking Model?

Transaction fees are burned to offset staking inflation, leading to a net deflationary supply model.
Greeks.Live29.10.25

What Is the Role of Transaction Fees in a Deflationary Staking Model?

In a deflationary model, transaction fees are often partially or entirely burned, reducing the total supply. If the burn rate from fees exceeds the inflation from staking rewards, the coin becomes deflationary.

This mechanism balances network security with long-term scarcity.

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