Once a predetermined number of coins have entered circulation, the network can stop distributing new coins and transition entirely to incentives based on transaction fees. This makes the network completely inflation free.

University of Minnesota - Twin Cities

The first transaction in a block starts a new coin owned by the creator of the block, automatically distributing coins into circulation and providing an incentive for nodes to support the network. Incentives can also be funded by transaction fees, which are added to the incentive value of the block containing the transaction.

Incentive

Nakamoto, Satoshi. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. https://bitcoin.org/bitcoin.pdf

Bitcoin Whitepaper

Incentive and Inflation

A greedy attacker with enough processing power to overwhelm the honest notes and defraud people would find it more profitable to use their processing power to play by the rules. Their advantage in processing power would enable them to benefit more from the network's incentives than everyone else, which is better than undermining the system which gives their wealth its validity in the first place.

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