# Tokenomics

Like most L1 PoS blockchains, Shido does not have a maximum supply and currently operates with a **7% hardcoded inflation rate**. This inflation supports the ecosystem by rewarding validators and delegators, ensuring the network remains secure and sustainable. Any adjustments, whether an **increase or decrease** in this rate, can only be made through **on-chain governance proposals** via the network’s governance module.

To address inflation, **Shido Chain** incorporates an **inbuilt burn module**, which is directly linked to **on-chain adoption and transaction volume**. The more the network is utilized, the more tokens are burned, effectively mitigating inflation. As adoption grows, the burn mechanism becomes increasingly active, balancing inflation with the network’s growth.

For real-time updates on **circulating supply** and **network performance**, visit [shidoscan.com](https://shidoscan.com/).\
\
For further technical documentation please visit [docs.shidoscan.com](https://docs.shidoscan.com).


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.shido.io/untitled/shido-network/overview/tokenomics.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
