Monetary Policy

Inflation Model

Vitality introduces controlled inflation at:

4.32% annually

Inflation is distributed in 28-day epochs.

Inflation vs Treasury Emissions

Vitality operates with two independent supply mechanisms:

1. Inflation

   • Newly minted tokens based on circulating supply

   • Distributed per epoch

2. Treasury Deployment

   • Pre-allocated tokens used for ecosystem growth

   • Released according to protocol strategy

These mechanisms operate independently but together shape total supply and distribution.

Emission Calculation

For each epoch:

epoch emissions = circulating supply × epoch inflation rate

Where:

epoch inflation rate = 4.32% / 13

System Behaviour

• Lower circulating supply → lower emissions

• Higher participation → more competitive CHI distribution

• Long-term locking → higher relative rewards

🔥 Important Clarification

Vitality does not inflate from total supply.

Inflation is strictly calculated from circulating supply.

Treasury & Inflation Relationship

The treasury (4.32B VTY) is deployed over time to support:

• ecosystem growth

• liquidity

• incentives

Inflation operates independently, expanding supply based on circulating tokens, while treasury distribution introduces additional controlled supply into the system.

Inflation is not pre-minted.

New tokens are minted per epoch based on circulating supply and distributed according to allocation rules.