![Crypto Terms Glossary: What is Exponential Decay Model? Crypto Terms Glossary: What is Exponential Decay Model?](/img/198/554/what-is-exponential-decay-model-sm.webp)
The exponential decay model is a cryptoeconomic minting mechanism used by numerous blockchain projects to mitigate inflation. Blockchains that follow the model produce higher native currency rewards during the launch and early stages of the network, which decrease exponentially over time, along with an increasing block mining difficulty. The model has been criticized by some for enabling a miner incentivization imbalance.