DAFI introduces a completely new alternative to hyperinflation.
Inflation is not a new concept and, in the world of traditional finance, continued pressure on the economy saw the US printed more money in one month than in two centuries last year. Inflation is also not new in the cryptocurrency and DeFi realms, with the mechanics propping-up today’s decentralized economies often relying on token inflation to reward token holders and early adopters.
Utilising tokens as a tool, the vast majority of DeFi protocols offer a range of incentives including staking and liquidity provision rewards to encourage participation and support. Outside of DeFi, inflation is again used largely to incentivize network participants to be a part of the decentralized mechanisms that keep platforms running and token economies functioning.
Too Much Air?
Although inflation is undoubtedly an effective strategy that works for some of the world’s strongest blockchain networks (Bitcoin being one of them), many of…
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