# Controlling OBO supply

![](https://1242063442-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfnqB8joyTToeXNiQ0CdQ%2Fuploads%2Fb4yHWazoVyePapadbBoS%2FSWAPTRADE%20\(13\).png?alt=media\&token=6efe4162-121a-4bc5-aa14-da859106d3d6)

## Why OBOS has no hard cap

There's currently no hard cap on the supply of OBOS token, making it an inflationary token.

Community members often point to this as a cause for concern, and while the chefs certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:

> OBO's primary function is to incentivize providing liquidity to the exchange. *Without block rewards, there would be much less incentive to provide liquidity (LP fees etc. would remain).*

**So what are the other ways OBOS supply is limited, to counter inflation?**

## How OBOS supply is reduced without a hard cap

The chefs aim to **make deflation higher than emission** by building deflationary mechanisms into Obo swap's products**.** The goal is for more OBOS to leave circulation than the amount of OBOS that's produced.

### Deflationary mechanisms

Regular token burns are built into many of Obo Swap's products with more on the way. Check the **OBOS Tokenomics page** for details on present and upcoming deflationary mechanisms..