Exponential Decay Model

The exponential decay model is a minting mechanism employed by various blockchain projects within the realm of crypto economics to address inflation concerns. Blockchains that adopt this model offer higher rewards in the form of native currency during the initial stages and launch of the network. However, these rewards gradually decrease over time following an exponential decay pattern, coinciding with an increase in mining difficulty. Some critics argue that this model can create an imbalance in miner incentives.