Inflation (Token)
The rate at which new tokens are created and enter circulation, diluting existing holders.
In-Depth Explanation
Token inflation comes from emissions, vesting unlocks, and staking rewards. High inflation requires proportionally high demand to maintain price. When analyzing yield, subtract inflation: 20% staking APY with 15% inflation is really 5% real yield.
Related Terms
Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.
Fully Diluted Valuation
FDVThe theoretical market cap if all tokens (including locked, unvested, and unissued) were in circulation.
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.