Tokenomics & On-chain

What is token inflation and how does it dilute holders?

Token inflation is the increase in a cryptocurrency's circulating supply over time, usually through scheduled issuance such as staking rewards or block subsidies. As new tokens enter circulation, each existing holder owns a smaller share of the total, which is dilution. For example, if supply grows 10% in a year and you hold the same amount, your ownership percentage falls by roughly that much unless price absorbs the new supply. Inflation does not automatically reduce price, but it adds persistent sell pressure that demand must offset. Understanding emission schedules helps you weigh whether an asset earns its issuance.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.