Why is there no hard cap?

Supply follows the Quantitative Theory of Money, with the objective of value stability over time. This means that instead of supply being fixed and value being variable, value is stabilized by fluctuating supply.

These supply fluctuations are controlled by a algorithmic monetary policy, which mimics the action a central bank takes in an economy, but with two important differences:

  1. The algorithm is not centrally controlled, but works at the protocol level
  2. New supply is shared between balance holders and Node operators, rewarding both useful work on the network and savers