Fixed supply token vs inflationary token

There are thousands of tokens revolving around the crypto market. There are many tokens out there giving good annualized profit yield (APY) through staking and farming. The major problem is that almost all are inflationary tokens. In the long run, their token supply will increase gradually and rapidly when new users come in. When the total supply of a coin or token increases day by day, then more tokens will dump in the market day by day and significantly reduce the price of the token in the long run.

The chart clearly shows the token inflation with respect to price depreciation. Inflationary tokens cannot survive in the long run unless periodic burning is done.

On the other hand, fixed supply tokens can appreciate in value in the long run. PRB token has a fixed supply of 60 million tokens. Only a limited number of participants have the opportunity to put their token into staking and farming. This even reduces the circulating supply and increases the demand for staking and farming.

The above chart shows the price of fixed supply tokens that appreciate in long run. The graph shows the reduction in circulating supply due to staked and LP tokens. When more and more users start using the platform, market capitalization increases resulting in an increase in token value.

Since the PRB token has a fixed supply, the token circulates inside the Premium Block ecosystem. More the users use the Premium Block platform, the higher the fees generated by the platform, which will be used to buy back PRB tokens and provide LP tokens.

This is a brief explanation of the difference between Fixed Supply Token and Inflationary Token.

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