What Are the Potential Negative Consequences of Aggressive Deflation?

Aggressive deflation can lead to a "hoarding" mentality, where users are incentivized to hold the token rather than spend it on network utility, reducing the token's velocity and ecosystem activity. It can also make the token price excessively volatile and difficult to use as a medium of exchange.

This can undermine the project's utility purpose and turn the token into a pure speculative asset.