[Question] Why is the number of coins growing?

PolymeshAssociation / Polymesh

Node for Polymesh Blockchain

https://polymesh.network/

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[Question] Why is the number of coins growing? #1550

Closed GitJhopa closed 1 year ago

GitJhopa commented 1 year ago

I don’t understand why the number of coins is growing, but you yourself are lowering the price of your cryptocurrency. How many coins will your cryptocurrency grow to?

F-OBrien commented 1 year ago

New tokens are minted at a variable rate as rewards as part of the proof of stake consensus mechanism that is used to secure the chain. There is no upper limit on tokens but inflation does reduce over time as per the protocol.