# Deflationary Forces on Maximum Supply

## <mark style="color:blue;">**EDEN's Role in Controlling Supply**</mark>

EDEN introduces a smart inflation-control mechanism via a MaxAPR design.

* Each pool has a predefined MaxAPR (e.g. 75%)
* The protocol determines how many EDEN should be minted to match that APR
* If less is needed based on user activity, EDEN is not minted
* Since EDEN = ELYS, any un-minted EDEN = un-minted ELYS

Example:

* Protocol can mint 10,000 EDEN/day
* Only 700 are needed
* 9,300 EDEN are skipped
* Result: 9,300 ELYS tokens are never minted

This results in a maximum supply reduction. As of May 2025, the Impact:

* Supply not created: 7.5M tokens
* **New max supply: 192.5M ELYS**, down from the original 200M

## <mark style="color:blue;">**ELYS Taker Fee**</mark>

With each swap transaction, a taker fee is charged.

* The current Taker Free is 0.05%
* The Taker Fee is used to automatically purchases ELYS (if needed), then sends the ELYS to be burned
* The burned ELYS reduces the maximum supply at a 1-for-1 basis.
