Staring at blockchain data late at night, I casually ran through the inflation model calculation for a well-known storage coin, and suddenly I lost all sleep— that kind of chilling wakefulness that runs down your spine.

Honestly, this feeling is like discovering a hole in your wallet, with cash spilling out in a clatter, while you happily think you're making a long-term value investment.

Today, we won't talk about mystical predictions; let's look directly at the data. If your asset allocation still includes these storage-type coins, or if you were once swayed by the "decentralized storage ecosystem revolution" rhetoric, perhaps you should read this.

**Inflation is the real hidden killer**

Let the data speak: according to current economic models, these coins release about 110,000 new tokens daily, which adds up to over 40 million tokens annually. With a circulating supply of approximately 686 million, the annual inflation rate is close to 6%. To put it another way—your coins are automatically losing 6% of their purchasing power each year, a figure more outrageous than the inflation rates of many countries.

What’s more frustrating is that this inflation mechanism itself has structural flaws:

On one side, the release pipeline is pouring out—miners' mining rewards plus team unlocks, which, based on 2025 data, amount to 200,000 new coins hitting the market daily; on the other side, the destruction channel is as narrow as a needle’s eye, with only about 2,200 coins destroyed daily, creating a severe imbalance.

The reality is, the actual revenue generated from storage services accounts for less than 5%. A large part of the remaining transaction data is actually "air files" used by miners to pad their earnings.

As a result, a vicious cycle emerges: coin price drops → miners rush to sell → market selling pressure increases → inflation effect amplifies → coin prices continue to bottom out. This is how the death spiral takes shape.

**Network defenses are weakening**

Similar mining projects fundamentally rely on miners to maintain network security and data availability. But the current situation before us is...