Deflationary Mechanics

Deflationary Mechanisms

There's currently no hard cap on the supply of YETI token, making it an inflationary token by nature. This can be a cause for concern, and while Yeti.Exchange can certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future.

YETI's primary function is to incentivize members to provide liquidity to the exchange. Without block rewards, there would be much less incentive to provide liquidity (above the current LP fees etc.).

The aim is to make deflation higher than emission by building deflationary mechanisms into Yeti Exchange’s products. The goal is for more YETI to leave circulation than the amount of YETI that's produced.

Deposit Fee

There is a transaction fee applied during staking for non-YETI pools. A portion of the deposit fees will be used to purchase YETI tokens from the exchange and then burn to remove them from circulation. The current deposit fee is set at 2.5%.

Buy Backs	Manual Yeti token buy backs to burn.
Token Burns	Manual token burns of reserve supply
Deposit Fee	A portion of the 2.5% deposit fee will be used to buy back tokens
Reduce Tokens Per Block	In order to slow inflation, we may consider reducing the amount of YETI tokens created per block at a later stage