No. The Entry Credits are burned. Entry Credits are non transferable. They can only be used to buy entries. But when they DO buy entries, the Factoid in the protocol that was used to buy the Entry Credits is released.
[/quote]
Released may be a bad term for that. THOSE factoid never come back, but the federated servers that process the entries will get a block reward. So in effect, they are release, but it is really new factoids. The inflation is meant to counter the deflation of destroying factoids. Entry credit price (per factoid) varies inversely to market price. That is supposed to be pegged to market price. The market just became active, so that isn't automated yet. It will be by the time the whole system (all federated servers, etc) is released. Cheap factoids will mean few Entry Credit per. Expensive factoids buy many entry credits.