Polkapool Liquidity Mining Program incentivises the liquidity providers of low liquidity pairs providing them with 50% of the Polkadex Inflation. The Polkadex Governance decides which pairs are eligible for liquidity mining. The liquidity mining rewards are only given to providers who lock up their liquidity for a certain time.
About 83,3333 Polkadex tokens are minted for the Liquidity Mining program every month and are shared between the liquidity providers. The liquidity pool shareholders of the eligible pools can get Polkadex tokens (PDEX) in proportion to their share of the total pool.
Even though the Liquidity Mining Program depends on inflation, Polkadex is not an inflationary model. Please, see the explanation below.