Is FLOW token deflationary or inflationary?

  • Updated

The FLOW token is inflationary. Holders of FLOW can earn inflationary rewards by staking their FLOW tokens to secure and operate the network. This is part of the proof-of-stake system that Flow operates on. Nodes can participate in the Flow network by depositing a specific amount of stake, thereby making a bonded pledge to participate in the Flow protocol during the upcoming epoch.

Any deviation from the protocol can result in decreased reward payments or punishments. Severe infractions can lead to "slashing", where some or all of the staked tokens are confiscated from the offending node(s).

This reward and punishment structure is designed to guarantee the security of the protocol and optimize performance over time.

For more information, please refer to our documentation on FLOW.