# Inflation Schedule

Fone's inflation rate is determined by the amount of Fone staked, which is limited by the circulating supply. Starting at 10% staking rewards yearly, the rate drops proportionally to 4%, calculated based on the number of people staking and the total amount staked. Since staking is the only way to mint new Fone Coin, the average yearly inflation rate is 7%.

On a 12B supply, the average early inflation is 840M (7%). Participants in the Fone Network can choose to send Fone to a dedicated "Burn Address", increasing the amount burned and reducing inflation. Each transaction on the Fone Network burns 0.02 Fone automatically, which should be considered when calculating the yearly inflation.

Example: 1B transactions yearly will result in 20,000,000 Fone burned.
