Question 45: Does the SCDO token have inflation or secondary issuance?
Answer: No, the total supply of SCDO tokens is fixed, and there is no form of secondary issuance. Once the 300 million tokens are fully released, the protocol will not create new SCDO tokens. Currently, it is in the mining issuance phase, which can be understood as having ‘inflation’ (new coin output), but the rate is gradually decreasing. After all tokens are mined, the inflation rate will drop to zero, and there may even be effective deflation due to factors like lost private keys (reduction in circulation). It is worth noting that during the decades of mining, SCDO has had controlled issuance, but this process was encoded at the genesis and cannot be changed unless the community unanimously agrees to a hard fork to modify the supply rules. Currently, there are no signs that the community has a plan for additional issuance; on the contrary, the fixed cap is seen as a significant feature of the project. Therefore, investors can think of SCDO's monetary policy as similar to Bitcoin, being deflationary: the supply curve rises initially and then flattens, ultimately stopping once the cap is reached. There is no governance token voting that can change this, nor is there a mechanism to reissue through protocol fee destruction; the rules are quite strict and transparent.