> For the complete documentation index, see [llms.txt](https://postthread.gitbook.io/postthread-wiki/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://postthread.gitbook.io/postthread-wiki/tokenomics/inflation.md).

# Inflation

The transferable token is highly inflationary to discourage speculators. Historically, we have seen many blockchain game tokens reach unsustainable prices due to speculators. This may seem great for gamers that have already played and earned in the game but is very negative for the future success of the game due to it being so expensive for new users to enter. Unfortunately, this leads to less users and activity. Social media is all about activity, so if our app does well, our token does well. We do not want cost to discourage people from interacting with our app.

## How does inflation fix speculation?

If someone wants to speculate on the token they can purchase it just like they would any other token. However, to keep the value of their investment, an investor must use the tokens to earn the high yield. Every interaction on the site can be thought of as staking your tokens and that stake will always earn you tokens. Staking them on a higher quality post will earn you more, but if you accidently stake on a low-quality post you will still earn your tokens back. The idea is that each day the token supply will increase by a substantial amount, but so will your token amount if you interact with the site.

## How much inflation?

The goal of PostThread is to reward the users that use and provide to the platform, so we plan to reward them with 1% of the total supply of the token per day. If there is not enough activity on the site, then rewards will go up and if there is too much activity on the site, then transaction fees will go up. 

## Why not burn tokens?

Burning tokens does benefits holders of the token, but not all holders should be rewarded equally. In our effort to limit speculation, we believe there are better ways to benefit holders that are actively helping the platform. Therefore, the number of tokens will always increase, but hopefully be directed to those who deserve them the most.


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