Inflation Model

A Usage-Based Supply Model Designed for Long-Term Sustainability

🔄 What Happens to Token Supply After Year 3?

After the initial three years - when the full 1 billion $GBM tokens are in circulation - the protocol will transition to a reactive inflation model, where new token issuance is directly tied to protocol activity.

This ensures token supply only grows when usage grows.

⚙️ How the Reactive Inflation Model Works

Once Token Reward Season 3 concludes, GBM enters a new phase — where each month functions as a mini reward season, with emissions adjusting dynamically based on usage.

1. Measure Monthly Activity

The protocol calculates total activity for the month, including:

  • Bidding volume

  • Winning points

  • Selling points

  • Referral points

(You can learn more about these points in the Activity Score Section)

2. Compare to Historical Average

This month’s activity is then compared to the cumulative average of all prior months since inflation began.

3. Adjust Inflation Rate

Based on this comparison:

  • Higher-than-average activity increases monthly token emissions

  • Lower-than-average activity reduces emissions

The result: a self-regulating model where token supply expands only when ecosystem activity justifies it.

📊 Example: Month-by-Month Inflation

Month 1:

  • Total activity score = 100

  • This sets the baseline. A fixed emission amount is released (e.g. 1,000,000 GBM tokens)

Month 2:

  • Total activity score = 120

  • Up 20%, so inflation increases proportionally

Month 3:

  • Total activity score = 80

  • Down 20%, so inflation decreases proportionally

Each participating wallet earns rewards based on their share of monthly activity.

🔒 Controlled Supply With Long-Term Alignment

To prevent runaway inflation, the model includes an asymptotic cap, ensuring emissions taper over time.

  • Early months may emit more to reward adoption

  • Over time, emissions adjust downward as the protocol stabilises

This makes $GBM token emissions:

  • Sustainable - no arbitrary or runaway inflation

  • Fair - only active contributors are rewarded

  • Demand-driven - tied to real usage and ecosystem growth

PreviousUnlock SchedulesNextStaking

Last updated