The LOAN Token is DISINFLATIONARY.
Meaning that it inflates, but the rate of inflation decreases over time.
Read on to learn more about the LOAN token and the impacts of the disinflationary tokenomics.
The Loan Token is one of two tokens which are generated from the Liquid Loans protocol.
It is the yield-bearing token which captures the revenue from the borrowing and redemption fees when it is staking in the LOAN Staking Pool.
The LOAN token halving refers to the fact that each year, LOAN token emissions to the Stability Pool are cut in half.
This means that each year, the LOAN token becomes hard and hard to get.
Other than buying LOAN token off the market, there are two ways to get LOAN token:
Unlike all of the fiat currencies, which are endlessly inflationary, the LOAN token is disinflationary.
This means that the supply inflates, but the rate of inflation decreases rapidly over time.
The price of an asset is determined by supply and demand.
Therefore, if an asset becomes more scarce (i.e. less inflation), then it increases the probability for positive price action.
Nobody knows how the price of a cryptocurrency will perform, but better tokenomics beat worse tokenomics everytime.
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Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.
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