When investors evaluate a public blockchain, what they often care about most is the long-term value of the tokens. However, in inflationary public blockchains, value is continuously diluted, which raises doubts for many. Kava's zero-inflation mechanism effectively alleviates this concern.
Within the framework of Tokenomics 2.0, investors see a scarce asset with stable supply and clear logic. As the native USDT is introduced and DeFi applications develop, the demand for tokens in Kava's ecosystem is continuously rising. The improvement in supply and demand dynamics provides strong confidence support for long-term investors.
This model is completely different from most public blockchains that rely on inflationary incentives. Investors no longer worry about token dilution and can focus on the value enhancement brought by ecosystem growth.
