Supply

Initial Supply

  • 400,000 NUTS

Inflation

While Squirrel is growing, every farm emits a fixed supply of NUTS over the week. These are distributed to users farming proportional to their % share of the pool. The inflation rate is being reduced weekly and we hope to eventually reduce it to 0.

Initial Inflation Rate (Feb, 2021)

  • 10,000 NUTS / farm / week

Current Inflation Rate (May 11th, 2021)

  • ~4,000 NUTS / farm / week
The longterm goal is that the inflation rate can be phased down to 0 in the future.

Max Supply

Technically there is no maximum supply. However, as the inflation rate is being reduced so too are the amount of newly minted NUTS. After the first three months the supply roughly doubled from 400,000 NUTS to ~800,000 NUTS. During this time the inflation rate got cut by about 60%. As Squirrel matures and the inflation rate approaches zero, the newly minted NUTS become negligible relative to the total supply and the only meaningful way that the max supply can be changed is during an insurance payout.

Deflation & Token Burns

It is on our roadmap to eventually use a portion of the insurance fees to buyback and burn NUTS. This will put an implicit hard cap on the supply and NUTS may become deflationary!