Inflation
Inflation measures the net increase in ICP supply over a selected period, calculated as the total amount of newly minted ICP minus the total amount of ICP burned in that period. It reflects the overall change in circulating supply, capturing both token creation and destruction dynamics.
How it’s calculated
Inflation = Minted ICP − Burned ICP
- All minting and burn transactions within the selected period are aggregated.
- Only transactions that add to or remove from the circulating supply are included.
- Values are updated continuously as new mint and burn transactions occur.
What this metric highlights
- Positive values indicate a net increase in ICP supply, potentially affecting scarcity and market dynamics.
- Negative values reflect net deflation, where burned ICP exceeds newly minted tokens.
Limitations
- Focused on net supply change, not distribution or holder impact; it does not indicate who received minted tokens or who burned them.
- Short-term measurements can fluctuate due to transactional spikes; longer-term aggregation gives a clearer picture.
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