# INV Tokenomics

INV does not have a hard-capped supply. In the past the DAO managed the circulating supply through periodic governance-approved expansions used to fund liquidity incentives, operational expenses, and anti-dilution rewards for stakers. This flexible supply policy allowed Inverse Finance to remain competitive and properly resourced while protecting stakers from dilution.

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### Supply Policy

**No Maximum Supply**

At the project's founding, the original social consensus targeted a maximum of 100,000 INV in circulation. However, following the [INV+ proposal](https://www.inverse.finance/governance/proposals/mills/6), the DAO shifted to an uncapped supply model, enabling governance to expand the supply as needed through on-chain votes. This ensures the DAO maintains sufficient INV for liquidity programs and operating expenses while continuing to reward stakers with anti-dilution incentives.

**Latest Supply Expansion**

The most recent supply expansion occurred in July 2025 through the [DOLA Bad Debt Elimination Proposal](https://www.inverse.finance/governance/proposals/mills/305), which minted 104,000 INV. These tokens were allocated to a group of strategic investors (Temple, DCF God, Chud.eth, Greenfund, Octoshi, and SS from Ethena) in exchange for immediately repaying $2.6M of DOLA bad debt. The INV was issued at a rate of 25 DOLA per INV and subject to a six-month vesting period, during which the tokens were staked in sINV.

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### Historical Programs

**Liquidity Mining Incentives**

The DAO directs INV incentives to select DEX liquidity pools to ensure deep, sustainable liquidity for INV, DOLA, and DBR. These allocations are monitored and adjusted by the Policy Committee based on market conditions and strategic priorities.

**xINV Anti-Dilution Program (2022 – 2024)**

The original anti-dilution rewards system was enacted operated through the xINV token on FiRM. INV stakers deposited their tokens into FiRM's INV market and received xINV receipts representing their staked position. These stakers earned continuous INV emissions designed to protect them from dilution caused by supply expansions used for DAO operations and liquidity programs.

The xINV program was phased out in early 2024 once DAO revenues became sufficient to operate at net-zero inflation. With the protocol generating enough income to cover operational expenses without requiring new INV issuance, the DAO no longer needed to compensate stakers for supply expansions that were no longer occurring. The anti-dilution mechanism was later replaced by the sINV model, which offers auto-compounding protocol revenue without requiring deposits on FiRM.

**Bond Protocol / Olympus Pro (2022 – 2023)**

From 2022 to 2023, Inverse Finance maintained a working relationship with Bond Protocol, utilizing their Olympus Pro bonding program. This allowed users to purchase INV tokens at a discount in exchange for supplying liquidity pool tokens or DOLA to the DAO treasury. The program helped the DAO accumulate protocol-owned liquidity while distributing INV at favorable rates. The amount of INV allocated to bonds was continuously monitored and optimized by the Policy Committee during the program's operation.

The bonding program ceased operations in 2023 as market conditions shifted and the DAO prioritized other liquidity strategies.

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### INV Buybacks

The DAO now operates an active INV buyback program funded by DBR issuance through the Virtual Auction infrastructure. This program was approved in [Proposal #345](https://www.inverse.finance/governance/proposals/mills/345) in response to favorable market conditions for accumulating INV at attractive prices.

**How It Works**

The Treasury Working Group manages a DBR-to-INV auction that continuously sells newly minted DBR for INV on the open market. The purchased INV is stored in the DAO Treasury and can be redeployed by governance for future initiatives, including grants, liquidity programs, or strategic partnerships.

**Key Parameters**

The auction operates with a rate-limited DBR issuance cap of up to 50M DBR per year, though the actual rate is dynamically adjusted based on INV's USD price and overall market conditions. The TWG multisig has flexibility to scale the buyback activity up or down as appropriate.

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**Buybacks are price-sensitive:** The program is designed to accumulate INV during periods of relative weakness, not to support the price. The DAO views buybacks as a capital allocation decision, not a market intervention tool.
{% endhint %}

**Transparency**

For the most up-to-date information on INV supply, emissions schedules, and treasury holdings, visit the Inverse Finance [Transparency Pages](https://www.inverse.finance/transparency/daohttps://www.inverse.finance/transparency/dao).

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