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# VRH Inflation

VRH follows a piecewise linear inflation schedule. The inflation is reduced by
$2^{1/4}$
each year. Every time when inflation is reduced, a new mining epoch begins.
The initial supply of VRH is 727.2 million tokens, which is 30% of the eventual
$t$
${\infty}$
supply of 2.42 billion tokens. All the initial supply apart from the IDO and Grants & Bug Bounties portions will be sent to the vesting smart contract. The initial inflation rate which supports the above inflation schedule is
$r = 16.7$
% (121.58 million tokens).