Controlling SPHYNX Total Supply

Why SPHYNX has no hard cap

There's currently no hard cap on the supply of SPHYNX token, making it an inflationary token.

Community members often point to this as a cause for concern, and while the chefs certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:

SPHYNX'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 SPHYNX's supply is limited, to counter inflation?

How SPHYNX supply is reduced without a hard cap

The chefs aim to makedeflation higher than emission by building deflationary mechanisms into Sphynx Labs products. The goal is for more SPHYNX to leave circulation than the amount of SPHYNX that's produced.

Reducing block emissions

By reducing the amount of SPHYNX made per block, we slow inflation. This has already been done once: Since the first reduction in block emissions, we've already effectively reduced the number of SPHYNX entering circulation from 40 SPHYNX per block to 14.5. 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.

Deflationary mechanisms

Regular token burns (view burn address)*MAKE HYPERLINK are built into many of Sphynx Labs products (like a 10% burn of SPHYNX spent on lottery tickets), with more on the way. Check the SPHYNX Tokenomics page for details on present and upcoming deflationary mechanisms.