Inflation occurs when the value of currencies declines over time, causing the price of goods and services to increase. Does inflation, however, hurt us? That depends. While a low inflation rate can be beneficial to economic stability, a very low inflation rate is usually a sign that demand for our game is lower than it should be. Consequently, economic growth may be hindered. A recession may be triggered by both low and high inflation. On the other hand, a moderate inflation rate can promote a healthy game economy since demand increases when the economy grows (*). When more $MCOS are unlocked through P&E and airdrops, this spike in demand ideally drives up the price. Investors who invest in our NFTs and tokens will benefit as their investments will appreciate over time.
During the initial stage of the game, our goal is to achieve a moderate inflation rate to boost our economy. However, it is impossible to predict the future, especially in the crypto market where things move much more quickly than they do in traditional markets. Therefore, to stave off high inflation, we plan to implement a burning mechanism in the future, in which a reasonable proportion of tokens will be burned.