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Question: are the rewards paid on dilution of the token

value? If so, what are the implication of it?

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inflation's effect on dilution of token value due to the distribution of block rewards depends on whether these new tokens are available for trading. Most rewards are reinvested into masternodes or liquidity pools so it does not immediately dilute the token value. However, if these new tokens trade hands quickly (used primarily for fiat cash flow) then value is diluted

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