What are Inflationary Tokens?

Inflationary tokens are a type of cryptocurrency designed to have a built-in inflation rate, which means that the token's total supply increases over time. This contrasts with other cryptocurrencies like Bitcoin, which have a fixed total supply. Inflationary tokens work because new tokens are periodically created and added to the existing supply, often through "mining" or "staking." The inflation rate is typically outlined in the token's white paper or in the blockchain code on which the token is based. The…