BAT is, at the moment, unlimited in number that will ever be created.
This means that, unlike Bitcoin, BAT will continue to be created indefinitely.
Is this a good thing? Is it a bad thing? What if BAT was deflationary?
I'll try to give my point of view on all these questions in this post.
Ok, first. What the heck does deflationary mean?
Well, it means that the model on which something is created is deflationary. And what does that mean?
That means that, at fixed times in the commodity's lifespan, lesser quantities of the commodity are introduced into the market, regardless of the amount of demand available. This is done to keep supply to the minimum, while trying to reduce reductions in price.
Bitcoin is a prime example of a deflationary currency. There will only ever be 21 million of them created, so people tend to out more value on it.
It is said that in 2040, when the last bitcoin is finally mined, bitcoin may be priced at a million dollars. But till 2040.
So should BAT be deflationary? Well, if we ever want to see it rise above $1.
Currently, since there is no definite number of tokens that will ever be created, it leads to people placing less value on BAT in the long run. Instead of saying 'I have to buy some BAT today because it may have been depleted tomorrow', they'd just say 'I'd buy it tomorrow. It's not going anywhere'.
It will be a better model if BAT were to be deflationary, but that poses a problem. Giving out BAT tokens like the way Brave is doing now won't be as practical as it is. Because the tokens will be much too valuable to just be given out.
Ok second point.
Is it a good thing that BAT will keep on being created?
The answer is yes.
You see, BAT isn't like the other cryptocurrencies.
For BAT to function the way it does, it needs an unlimited supply.
Imagine if the Brave browser stopped giving out BAT incentives tomorrow because the maximum number of BAT tokens has been created. This will lead to users dumping the project, which will lead to a massive price dump.
So BAT is ok the way it is. Let's just keep enjoying it and the Brave browser!