Review on Stellar by Emilija Jensen

The Stellar Network has a built-in, fixed, nominal inflation mechanism. This inflation mechanism is good because it is predictable and steady. You would expect that when the circulating supply of XLM increases, the inherent value of each coin should decrease (more supply introduced, demand stays the same). However, since the coins are released at regular intervals and in relatively small amounts , the inflation shouldn’t cause much negative price movement and could even increase liquidity.