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What Is a ‘Deflationary’ Cryptocurrency Model?

A deflationary model is one where the total supply of the cryptocurrency decreases over time or where the rate of new coin creation is less than the rate of coin destruction (burning). This is often achieved through mechanisms like transaction fee burning or scheduled token destruction events.

The goal is to increase scarcity and potentially value.

How Does the Burning Mechanism Contribute to the “Store of Value” Narrative for Ethereum?
What Is the Difference between an Inflationary and a Deflationary Token Model?
How Are Token Burning Mechanisms Used to Manage Treasury Token Supply?
What Is the Impact of a Deflationary Vs. Inflationary Token Model?