Example one: a single merchant
A restaurant generates $10,000 of eligible spending this month. Suppose $500 of that goes into the reward budget.
In the network’s early days, $500 may correspond to 5,000 POSX. In the next stage, the same $500 may correspond to only 2,500 POSX.
The result: the reward value the merchant contributes has not decreased; POSX acquisition demand still exists; the amount of POSX distributed decreases.