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filippoweb3 committed Nov 15, 2024
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11 changes: 7 additions & 4 deletions docs/learn/learn-inflation.md
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Expand Up @@ -19,13 +19,16 @@ of which 15% goes to the [treasury](./learn-polkadot-opengov-treasury.md) and 85
It is essential to understand that the primary objective of inflation is to incentivize network
participants through
[Nominated Proof of Stake (NPoS)](./learn-consensus.md#nominated-proof-of-stake) and to grow the
network through funding the on-chain treasury. Token inflation rate can be updated in the future
through [on-chain governance](./learn-polkadot-opengov.md) based on thorough tokenomics research.
network through funding the on-chain treasury. The token inflation rate can be updated through
[on-chain governance](./learn-polkadot-opengov.md) based on thorough tokenomics research.

Below is a 25-year prediction of DOT gross annual inflation assuming current fixed inflation rate.
Below is a 25-year prediction of DOT gross annual inflation (red line) and DOT total issuance (blue
line), assuming the current fixed inflation rate.

![inflation](../assets/dot-inflation.png)

Net DOT inflation depends on [treasury expenditures](./learn-polkadot-opengov-treasury.md) and
[coretime sales](./learn-agile-coretime.md#agile-coretime-implementation), and thus cannot be
[coretime sales](./learn-agile-coretime.md#agile-coretime-implementation) and thus cannot be
predicted. Net inflation can be defined as follows:

```
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