Definition ∞ Infinite token issuance refers to a cryptocurrency or digital asset protocol design where there is no predetermined upper limit on the total supply of tokens. This contrasts with protocols that enforce a fixed or capped supply, like Bitcoin. Tokens can be continuously generated through mechanisms such as mining rewards, staking rewards, or inflation schedules. Such a model can influence a token’s long-term value and its role within the ecosystem.
Context ∞ The economic implications of infinite token issuance are a frequent topic of discussion, particularly concerning its potential impact on inflation and token value. Projects employing this model often rely on burning mechanisms or utility-driven demand to counteract inflationary pressures. The debate involves balancing network security and incentive structures with maintaining economic stability for the asset.
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