Initially, Stellar had a total supply of 100 billion XLM, but in 2019, the Stellar Development Foundation (SDF) burned over half of the supply, reducing it to 50 billion XLM. This token burn was intended to increase scarcity and enhance the value of XLM.
Currently, there is no inflation mechanism in place, meaning no new XLM tokens will be created. With a fixed supply, increasing demand could drive up the XLM price over time.