Tokenomics & On-chain

What is the difference between inflationary and deflationary tokens?

The difference is the direction of supply: an inflationary token has a circulating supply that grows over time through new issuance, while a deflationary token has a supply that shrinks through mechanisms like burns. Inflationary designs fund rewards and security but dilute existing holders; deflationary designs aim for scarcity but can reduce the incentives that issuance pays for. For example, many staking networks are inflationary, while some fee-burning tokens are net deflationary. Neither model guarantees a price outcome. The supply schedule is one input among utility, demand, and adoption when reading tokenomics.