Controlling SELF Supply
Last updated
Last updated
There's currently no hard cap on the supply of SELF token, making it an inflationary token.
Community members often point to this as a cause for concern, and while the chefs certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:
SELF's primary function is to incentivize providing liquidity to the exchange. Without block rewards, there would be much less incentive to provide that liquidity, but exchange fees. would remain.
So what are the other ways SELF's supply is limited to counter inflation?
The team aims to make deflation higher than emission by building deflationary mechanisms into SMBSwap's products. The goal is for more SELF to leave circulation than the amount of SELF that's produced.
By reducing the amount of SELF made per block, we slow inflation. This has already been done once, we've already effectively reduced the number of SELF entering circulation from 10 SELF per block to 5. But we don't want to do this too frequently, too early, for the same reason we don't want a hard cap: we still need to incentivize people to provide liquidity.
Regular token burns (view burn address) are built into many of SMBSwap's products (like a 10% burn of SELF spent on lottery tickets), with more on the way. Check the **** SELF Tokenomics page **** for details on present and upcoming deflationary mechanisms.
