Controlling $SEAX Supply
How we manage the inflationary aspects of $SEAX
There’s currently no hard cap on the supply of SEAX tokens, making it an deflationary token.
Community members often point to this as a cause for concern. While the founding team certainly understand the wish for a hard cap, there’s a big reason we don’t expect to set one in the near future.
SEAX’s primary function is to incentivize providing liquidity to the exchange. Without block rewards, there would be much less incentive to provide liquidity (LP fees etc., would remain).
So what are the other ways SEAX’s supply is limited to counter inflation?
The founding team aims to make deflation higher than emission by building deflationary mechanisms into SeaDEX’s products. The goal is for more SEAX to leave circulation than the amount of SEAX produced.
By reducing the amount of SEAX made per block, we slow inflation. But we don’t want to do this too frequently, too early, for the same reason we don’t want a hard cap: we still need to incentivize people to provide liquidity.
Regular token burns are built into many of SeaDEX’s products (like the 28% burn to acquire $ESEAX), with more on the way. Check the SEAX Tokenomics page for details on present and upcoming deflationary mechanisms.
We will be burning SEAX for different milestones ($1 million TVL, for example) or sometimes to awaken the spirit of revolution in our army. Make sure you keep up with our Twitter to catch all the latest burn announcements!