There's currently no hard cap on the supply of BANANA token, making it an inflationary token.
Community members often point to this as a cause for concern, and while the founding apes certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:
BANANA's primary function is to incentivize providing liquidity to the exchange. Without block rewards, there would be much less of an incentive to provide liquidity (LP fees etc. would remain).
So what are the other ways BANANA's supply is limited, to counter inflation?
The founding apes aim to make deflation higher than emission by building deflationary mechanisms into ApeSwap’s products. The goal is for more BANANA to leave circulation than the amount of BANANA that's produced.
By reducing the amount of BANANA made per block, we slow inflation. But we don't want to do this too frequently, too early, for the same reason we don't want a hard cap: we still need to incentivize people to provide liquidity.
Regular token burns (view burn address) are built into many of ApeSwap's products (like the 28% burn to acquire GNANA tokens), with more on the way. Check the BANANA Tokenomics page for details on present and upcoming deflationary mechanisms.
We are regularly burning BANANA for different milestones ($50 million TVL, for example), or sometimes just for fun. Make sure you keep up with our Twitter to catch all the latest burn announcements!