> For the complete documentation index, see [llms.txt](https://docs.bitsong.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitsong.io/features-and-modules/mint.md).

# Mint

The minting mechanism was designed to:

* allow for a flexible inflation rate determined by market demand targeting a particular bonded-stake ratio
* effect a balance between market liquidity and staked supply

In order to best determine the appropriate market rate for inflation rewards, a moving change rate is used. The moving change rate mechanism ensures that if the % bonded is either over or under the goal %-bonded, the inflation rate will adjust to further incentivize or disincentivize being bonded, respectively. Setting the goal %-bonded at less than 100% encourages the network to maintain some non-staked tokens which should help provide some liquidity.

It can be broken down in the following way:

* If the inflation rate is below the goal %-bonded the inflation rate will increase until a maximum value is reached
* If the goal % bonded (67% in BitSong) is maintained, then the inflation rate will stay constant
* If the inflation rate is above the goal %-bonded the inflation rate will decrease until a minimum value is reached