Controlling JAMON supply

Why JAMON has no hard cap

There's currently no hard cap on the supply of JAMON token, making it an inflationary token.

Community members often point to this as a cause for concern, and while the chefs certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:

JAMON's primary function is to incentivize providing liquidity to the exchange. Without block rewards, there would be much less incentive to provide liquidity (LP fees etc. would remain).

How JAMON supply is reduced without a hard cap

The Cutter Professional aim to makedeflation higher than emission by building deflationary mechanisms into JamonSwap's products. The goal is for more JAMON to leave circulation than the amount of JAMON that's produced.

Reducing block emissions

By reducing the amount of JAMON made per block, we slow inflation. This has already been done once: Since the first reduction in block emissions, we've already effectively reduced the number of JAMON entering circulation from 40 JAMON per block to 14.5. But we don't want to do this too frequently, too early, for the same reason we don't want a hard cap: we still need to incentivize people to provide liquidity.

Deflationary mechanisms

Regular token burns are built into many of JamonSwap's products (like a 10% burn of JAMON spent on lottery tickets), with more on the way. Check the JAMON Tokenomics page for details on present and upcoming deflationary mechanisms.