Why seen as deflationary?

The reason we see this as a deflationary token has to been seen in contrast to traditional FIAT currency-based economies. In traditional economies money is created through a process called monetary creation, which involves several players including commercial banks, the central bank, and the government. Here is a brief overview of how money is created in FIAT economies:

1. Commercial banks create money when they make loans to customers. When a bank approves a loan, it credits the borrower's account with new funds. This increases the money supply in circulation, as there is now more money available than before the loan was made.

2. The central bank, which is typically responsible for regulating the money supply and the banking system, also creates money. It does this by purchasing assets from banks, such as government bonds, and paying for them by creating new reserves for the banks. These reserves can then be used by the banks to make new loans, increasing the money supply.

3. The government can also create money through fiscal policy. When the government spends money, it injects new money into the economy. This money can circulate through the economy, leading to an increase in the money supply.

If the parties involved decided to increase the money supply by 3% annually the money supply will increase by 34.39% over 10 years. How ever if the increase is 5% annually the money supply would increase by 62.89% over 10 years. You will have an increasing supply percentage every year and defacto inflation wise, seen from the original amount but fixed seen year by year.

STC365 tokens work antithetically. We will have a fixed increase of supply seen from the original amount but decreasing year by year.