Almost every DeFi protocol that offers farming / yield incentives needs a way to "create" tokens that can be used for rewarding farmers. When tokens are created, this process is done through a "Mint" function that essentially mints tokens into existence and increases the total supply.
Projects that use Minting functions are by definition, inflationary. Every time a mint happens the total supply of the token increases which also increases the circulating supply, dilutes holders value, and creates a sell pressure.
All of xTAO's smart contracts are verified and can be transparently seen through BSC Scan. There is no mint functionality in any of our contracts and the total supply of Tao can never be increased.
xTAO farms and pools are self-sustainable from the token distribution mechanics which you can read more about here.