Inflation
Market
Increase in token supply or general price level over time.
Inflation is an increase in supply or general prices over time. In crypto, protocols may issue tokens to pay validators or drive usage. Designs range from fixed to adaptive. Balance issuance with demand and remove supply via burns if needed.
Frequently asked questions
What causes inflation in tokens?
Protocol issuance to pay validators or growth incentives. Some designs offset with burns or buybacks.Is inflation always bad?
Not always. Moderate issuance can fund security or growth. The impact depends on demand and token design.How do I check a token’s inflation?
Read the docs and contracts. Look for issuance schedules and burn mechanics in explorers.