The monetary policy of the Cardano network is built into the protocol source code. It contains, for example, a maximum number of ADA coins that will never be more than 45,000,000,000. Also rules for fee collection, initial distribution of ADA coins, monetary expansion, rewarding pool operators and stakers, use of project treasury, etc. Monetary policy aims to keep the protocol sustainable in the long term and to ensure its decentralisation and security. Monetary policy must provide sufficient economic incentive to maintain the protocol and develop the ecosystem. More than 75% of ADA coins are already in circulation. The protocol will distribute the remaining coins periodically each epoch in the coming years as rewards for pool operators and stakers. Part of the rewards go to the project treasury. The Cardano protocol has a capped number of coins and will only depend on fees in the future. There is no never-ending inflation of ADA coins.
