Controlling SMOL supply
There is no hard cap for SMOL token as SMOL's primary function is to incentivize the provision of liquiditiy to the exchange. Without SMOL rewards, there would be considerably less incentive for providing liquidity.
However, to allay users' concern of inflation, we have the following deflationary mechanisms put in place:

A. Reducing block emissions

By reducing the amount of SMOL emitted per block, we slow down the supply of SMOL and in turn, slow inflation. We will observe the SMOL token price closely and execute this measure as and when necessary. In the future, this will be decided on by SMOL token holders

B. Token burns

Based on the products we have at launch, we can conduct token burns via the following ways:

1. Development Fund burns

Apart from covering R&D and ongoing operational expenses, another key purpose of the Development Fund is to serve as a deflationary tool to control SMOL supply. Once we have attained a healthy level of traction, we intend to automatically burn all SMOL tokens emitted to the Development Fund.

2. Trading Fee buyback and burn

We will increase the proportion of the trading fee to be reserved for buyback and burn in tandem with the growth of our platform i.e. the bigger we grow, the bigger the proportion of the trading fee to be used for buyback and burn.
If the situation allows, we will commence the buyback and burn whenever there is a considerable dip in SMOL prices. This would allow us to buyback and burn more SMOL, thereby maximizing the deflationary effect of the funds reserved for buyback and burn.
3. Ad hoc burns
We will conduct ad hoc burns of the SMOL we have at our disposal as and when we deem appropriate and necessary to maintain price levels of SMOL.
4. Other burns
As our platform grows, we will explore other channels for us to burn SMOL.