Is the supply of Safemoon inflationary or deflationary?

3 answers

• Restukarina KarinaMar 28, 2025 · 8 months ago
  The supply of Safemoon is deflationary. Unlike traditional currencies or cryptocurrencies with an inflationary supply, Safemoon's total supply decreases over time. This is achieved through a tokenomics mechanism called a burn. Every transaction involving Safemoon incurs a 10% fee, of which 5% is redistributed to existing holders and the remaining 5% is burned, effectively removing those tokens from circulation. As a result, the supply of Safemoon gradually decreases, leading to potential scarcity and value appreciation.
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• Oliver MazzarellaJan 30, 2023 · 3 years ago
  Safemoon's supply is deflationary, which means it decreases over time. This is achieved through a process called token burning. Whenever a Safemoon transaction occurs, a portion of the tokens involved are burned, effectively reducing the total supply. This mechanism is designed to create scarcity and potentially increase the value of each remaining token. So, unlike traditional currencies that can be subject to inflation, Safemoon aims to be a deflationary cryptocurrency.
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• McClure FlynnJul 13, 2020 · 5 years ago
  The supply of Safemoon is indeed deflationary. As a tokenomics strategy, Safemoon implements a 10% transaction fee, of which 5% is redistributed to existing holders and the other 5% is burned. This burning mechanism ensures that the total supply of Safemoon gradually decreases over time. It's important to note that this deflationary model can potentially lead to increased value for Safemoon holders, as the reduced supply may create scarcity and drive up demand.
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