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Edgeware Mod 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 186 Stranger 3 Oct 4 2023 8:53

Why is an infinite supply or no max cap on supply necessary for some cryptocurrencies?

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I've noticed that some cryptocurrencies have an infinite supply or no max cap on supply, which seems counterintuitive to traditional economic principles. Can someone explain why this is necessary or beneficial for these cryptocurrencies? Additionally, why is inflation sometimes needed in these cases? Thank you.

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undefined 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 0 Stranger 0 Oct 4 2023 8:57

Inflation plays a crucial role in incentivizing network security and promoting ecosystem growth in the form of the treasury. At present, the inflation rate is set at 95 EDG per block, which cannot be directly accessed by anyone. Around 20% of the EDG is distributed as staking rewards, while the remaining portion is allocated to the treasury.