Non-Inflationary

Definition ∞ Non-inflationary describes a digital asset or economic system where the total supply of the asset does not increase over time, or its increase is strictly controlled and predictable, often with a capped maximum supply. This characteristic aims to preserve the purchasing power of the asset by preventing devaluation through excessive issuance. Such systems contrast with traditional fiat currencies, which can experience continuous supply expansion. Scarcity is a core tenet of this design.
Context ∞ The discussion surrounding non-inflationary digital assets frequently concerns their potential as stores of value and their role in a deflationary economic model. A key debate involves the practical implications of fixed or limited supply assets on economic activity and adoption within a broader financial ecosystem. A critical future development to watch for is how these assets interact with global macroeconomic trends and whether their non-inflationary properties lead to sustained value appreciation or adoption.