<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/10/27045646/LOAN-Token-Halving-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/10/27045646/LOAN-Token-Halving-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/10/27045646/LOAN-Token-Halving-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/10/27045646/LOAN-Token-Halving.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/10/27045646/LOAN-Token-Halving.webp" alt="LOAN Token Halving" class="wp-image-4294"/></figure>



The LOAN Token is DISINFLATIONARY.



Meaning that it inflates, but the rate of inflation decreases over time.



This provides really interesting tokenomics for the <a href="https://www.thecoinzone.com/pulsechain/loan-token-ultimate-guide" data-type="URL" data-id="https://www.thecoinzone.com/pulsechain/loan-token-ultimate-guide" target="_blank" rel="noreferrer noopener">LOAN Token</a> and the <a href="https://www.thecoinzone.com/blockchain/explained-liquid-loans-defi-protocol-on-pulsechain" data-type="URL" data-id="https://www.thecoinzone.com/blockchain/explained-liquid-loans-defi-protocol-on-pulsechain" target="_blank" rel="noreferrer noopener">Liquid Loans</a> protocol as a whole.



Read on to learn more about the LOAN token and the impacts of the disinflationary tokenomics.



<h2 class="wp-block-heading tablecontent">What is the LOAN Token?</h2>



The Loan Token is one of two tokens which are generated from the <a href="https://www.thecoinzone.com/defi/protocol-owned-liquidity/" data-wpil-monitor-id="783">Liquid Loans protocol</a>.



It is the yield-bearing token which captures the revenue from the borrowing and redemption fees when it is staking in the <a rel="noreferrer noopener" href="https://www.thecoinzone.com/pulsechain/the-loan-staking-pool" data-type="URL" data-id="https://www.thecoinzone.com/pulsechain/the-loan-staking-pool" target="_blank">LOAN Staking Pool</a>.



The LOAN token halving refers to the fact that each year, LOAN token emissions to the <a href="https://www.thecoinzone.com/defi/defi-yield-protocol/" data-wpil-monitor-id="377">Stability Pool</a> are cut in half. 



This means that each year, the LOAN token becomes hard and hard to get.



<h2 class="wp-block-heading tablecontent">How To Get LOAN Token</h2>



Other than <a href="https://www.thecoinzone.com/wealth-building/buy-the-rumor-sell-the-news/" data-wpil-monitor-id="533">buying LOAN token off the market</a>, there are two ways to get LOAN token:



<ol>
<li>The <a href="https://www.thecoinzone.com/liquidloans/lp-rewards" data-type="URL" data-id="https://www.thecoinzone.com/liquidloans/lp-rewards" target="_blank" rel="noreferrer noopener">LP Rewards Program</a>. During the first 42 days, holders of both PLS and USDL have the opportunity to provide liquidity on the PLS:USDL pair on PulseX v2. If they take their LP <a href="https://llcms-dev.liquidloans.io/liquidloans/how-to-stake-loan-token/" data-wpil-monitor-id="20">tokens to the Liquid Loans</a> dApp, they can earn LOAN token rewards on an emission schedule. Consequently, after the 42 days expires, there will be only one final way to get <a href="https://www.thecoinzone.com/liquidloans/loan-token-value-proposition/" data-wpil-monitor-id="1225">LOAN token</a> other than buying off the market.</li>
</ol>



<ol start="2">
<li>Providing Stability for USDL in the <a href="https://www.thecoinzone.com/liquidloans/stability-pool" data-type="URL" data-id="https://www.thecoinzone.com/liquidloans/stability-pool" target="_blank" rel="noreferrer noopener">Stability Pool</a>. As a Stability Provider, you earn PLS from <a href="https://www.thecoinzone.com/liquidloans/why-real-estate-investors-understand-ll/" data-wpil-monitor-id="867">liquidations as well as LOAN</a> token emissions on a time-based schedule. The time-based schedule halves every year. Meaning if there are 1 million LOAN emitted in year one, there will be 500,000 in year two, 250,000 in year three, and henceforth.</li>
</ol>



<h2 class="wp-block-heading tablecontent">The Implications of the LOAN Halving</h2>



Unlike all of the fiat currencies, which are endlessly inflationary, the <a href="https://www.thecoinzone.com/liquidloans/best-time-to-buy-loan/" data-wpil-monitor-id="1399">LOAN token</a> is disinflationary. 



This means that the supply inflates, but the rate of inflation decreases rapidly over time.



The <a href="https://www.thecoinzone.com/pulsechain/what-influences-the-price-and-supply-of-usdl/" data-wpil-monitor-id="1091">price of an asset is determined by supply</a> and demand. 



Therefore, if an asset becomes more scarce (i.e. less inflation), then it increases the probability for positive price action.



Nobody knows how the price of a cryptocurrency will perform, but better tokenomics beat worse tokenomics everytime.

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The LOAN Token Halving (Early Liquidity and Stability Provider Rewards)

Do you know the tokenomics of LOAN? I bet you don't! Read on to find out.