Will burning add value to deflationary coin

Deflationary crypto coins are cryptocurrencies that employ a specific tokenomics model that ensures the growth of the value of tokens over time. The economic theory of supply and demand is put into practice when developing crypto tokenomics to ensure sustainable growth of crypto asset value over time. A deflationary token model is a model that is designed to reduce the overall supply of the tokens to the market with time. The reduction in supply is expected to drive up demand for more tokens which essentially results in the growth of the value of the token.

Deflationary Model

Although there are several deflationary crypto tokens, there are several various deflationary models used by different blockchain ecosystems. Despite the differences, the fundamental concept of creating scarcity to increase supply is undoubtedly common among these coins.   The deflationary models often differ in how scarcity is created within the token’s ecosystem.The most common deflationary model involves the burning tokens. Other methods include creating tokens with a fixed total supply, taxing transactions within the network using the native token as the only mode of payment, and buying back tokens.

Criteria for a Deflationary Coin Model Tekenomic

Is the contract completely unchangeable, or is it flexible and can be amended at any time? Consider designing a token for a closed community, such as a collection of clinics. In that situation, a solution like this is perfectly reasonable. Does the crypto token have any extra features, such as staking? This could be done by burning all staked tokens, which would take them out of the current liquidity pool and let the interest on them be used to create new currencies.

Examples of Deflationary crypto coin

Bitcoin (BTC) Binance Coin (BNB) Litecoin (LTC) PancakeSwap (CAKE) Solana (SOL)

Polygon (MATIC) Tron (TRX) Ripple (XRP) Terra (LUNA) Crypto.com (CRO)

Bitcoin Cash (BCH) Filecoin (FIL) Ethereum Classic (ETC) FTX  Token (FTT) Safe moon (SAFEMOON)

How to Desig your own Deflationary Token

– Step 1 – Decide on the blockchain – Step 2 – Define the properties of your token – Step 3 – Develop a Smart Contract – Step 4 – Deployment on the blockchain

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