# kaal:claim:3396542-019

**Claim.** Because the total supply of tokens grows at a constant rate each period, the value of individual tokens depreciates over time.

**Type.** mechanism  **Support.** argued

**Holds when.**

- token supply growing at rate rho per period

**Source quote.**

> Note that as the total number of tokens is growing at a rate of ρ per period, the value of individual tokens will depreciate over time.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Decentralized Underwriting* (2019), V. MODEL, 2. Value of Tokens in Steady State, page 17

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

**Verify.** sha256 of source PDF `ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Decentralized%20Underwriting.pdf

**Topics.** tokenomics, economics, dao

**Keywords.** token-dilution, token-valuation, inflation, dao-design

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.