In the early days of PoS blockchains, transaction fees were simply not enough to sustain network operation. Nodes and validators need continuous incentives; otherwise, the network risks centralization or outright paralysis. Dusk understands this very clearly.

Therefore, here is a clarification of a common misconception: Dusk's token issuance is not for price speculation, but to keep the network alive.

**Why must tokens be issued continuously?**

The answer is straightforward: to continuously incentivize participants who maintain network security, ensure finality, and facilitate compliant settlements.

In the early stages when the network is not fully mature, on-chain transaction volume is limited, RWA (Real-World Assets) and institutional applications are still ramping up, and transaction fees alone cannot cover node costs. At this point, token issuance becomes a core component of the security budget — but Dusk's approach is not unlimited issuance; it follows a strictly controlled long-term issuance curve.

**Issuance Logic: Security First, Not Uncontrolled Inflation**

Dusk's design philosophy is clear:

Serve the long-term ecosystem rather than short-term stimulation; prioritize network security; systematically control inflation; reduce potential attack surfaces.

To achieve this, a geometric decay model is used, rather than linear or arbitrary adjustments.

**A "Patience" Plan Spanning 9 Phases Over 36 Years**

From the very beginning, Dusk has recognized: this is a financial infrastructure to run for decades, not a project tied to a single bull or bear cycle.

The total issuance period is 36 years, divided into 9 phases, each lasting exactly 4 years. After each 4-year cycle, the amount of new DUSK issued decreases at a fixed ratio. The network gradually shifts from token incentives to real usage and fee-driven mechanisms.

This logic is somewhat similar to Bitcoin's halving concept but incorporates the security needs of a PoS network. The difference is: Bitcoin only handles value transfer, while Dusk needs to support compliant finance, RWA, and institutional settlements, hence opting for a longer, smoother issuance curve better suited for financial infrastructure.