As stated in the Venom Whitepaper, the total supply of tokens will be 7,200,000,000 VENOM. I would like to clarify - is this the final amount of tokens or (over time or depending on the situation) can additional VENOM tokens be minted? This is important for understanding deflation in relation to the VENOM token in the future.
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The Venom blockchain has an inflationary model, meaning no fixed maximum supply of tokens exists. However, the Venom Foundation is exploring ways to transition to a deflationary model.
One possible way to transition to a deflationary model is through part of the transaction fee burning (a crypto term for destroying). Fee burning permanently removes certain tokens from circulation by sending them to an address with no known private key, rendering them unusable.
This is not a final proposal. The transition to a deflationary model would require careful consideration and planning to avoid any negative impacts on the network’s stability and sustainability. The Venom Foundation will continue to evaluate the network participant’s behavior and explore the best approaches after launch to maintain a healthy and thriving ecosystem for all participants.
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As practice shows in many blockchains, if the amount of native tokens does not decrease over time … then the price of the token does not grow either. With very rare exceptions (ADA, XRP etc). And if the price of the token does not grow… how can it be attractive to a wide audience in the future? I hope the Venom blockchain will come to this decision based on the experience of other blockchains.
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