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What Is a Deflationary Token Model and How Does It Work?

Deflationary models reduce supply via burning or buybacks to increase scarcity and long-term value.
Greeks.Live17.11.25

What Is a Deflationary Token Model and How Does It Work?

A deflationary token model is designed to reduce the total or circulating supply of tokens over time, typically through mechanisms like transaction fee burning or buybacks. This continuous reduction aims to increase the scarcity of the token, potentially driving up its price over the long term.

How Does the Issuance Rate of a Token Impact Its Long-Term Value?
How Do Protocol Fees Contribute to the Long-Term Value of a DAO’s Native Token?
What Is the Difference between a Fixed-Supply and a Deflationary Token Model?
What Is the Difference between a Deflationary and an Inflationary Token Model?

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