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What Is the Concept of a “Deflationary Mechanism” in Crypto?

A deflationary mechanism reduces the total circulating coin supply over time, typically through a "burning" process, increasing scarcity.
Greeks.Live29.10.25

What Is the Concept of a “Deflationary Mechanism” in Crypto?

A deflationary mechanism is a feature in a cryptocurrency protocol designed to reduce the total circulating supply of the coin over time. The most common example is a "burning" mechanism, where a portion of transaction fees or protocol revenue is permanently removed from the supply, increasing the scarcity of the remaining tokens.

What Is the Economic Effect of ‘Burning’ the Base Fee?
How Does ‘Token Burning’ Affect Market Capitalization?
What Is the Purpose of a ‘Burn Mechanism’ in a Token’s Supply Model?
How Does a Vesting Schedule Affect a Coin’s Future Circulating Supply?

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