However, at the end of a turn depending on the direction, either the maximum and minimum supply is halved.
For example, when PRIA enters Turn 2, a turn of expansion, the maximum supply is 50,000 PRIA. And once the token hits the new limit, Turn 3 would start as a turn of contraction (burning) again, but now the minimum supply is 5,000 PRIA. And so forth! All the way to 1.2 PRIA.
- Inactivity Burn
- What is a deflationary token
- What is a hyper deflationary token
- FAQ About Deflationary Crypto
- Is Bitcoin Deflationary?
- What is deflationary tokenomics
- What is deflationary tokens
- Final thoughts
- What is deflation token
- Whats a deflationary token
- Is Deflationary Crypto Safer Than Inflationary?
- What is PRIA Token?
In the past, we have seen immense hype around deflationary assets. However, once that hype passes then the burn rate doesn’t keep up to drive the price up. Especially, if the team doesn’t have a strong marketing presence or community behind it. PRIA solves this by using an inactivity burn mechanism to enforce its ultra-deflationary policy.
What is a deflationary token
People must work more and more for their money, because with every unit that is created, an inversely proportional amount of value is lost.
If the whole economy had one single dollar in circulation and apples cost 10 cents, if another 9 dollars were suddenly artificially injected into this economy, apples would have their price raised to a dollar in order to compensate, otherwise all the apples would be gone now that 10X more money is available on the market. In order to maintain the value of supplies, the prices go up when money is printed and they go down when money is drained from the markets.
What happens, then, in a deflationary system? In this case, money does not lose value, but instead gains value with time.
Bitcoins will be lost at a certain average rate per year and after some time no more coins will ever be minted.
What is a hyper deflationary token
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FAQ About Deflationary Crypto
Is Bitcoin Deflationary?
The answer is both yes and no depending on the definition of deflationary crypto you are working with.
Deflationary crypto requires that the coin’s supply decreases. Bitcoin doesn’t meet this criterion of deflationary crypto.
In a real sense, Bitcoin mining adds 6.25 BTC to the overall supply after every single block.
However, at the same time, Bitcoin has a fixed supply of 21 million coins with more than 18 million of them in circulation at the moment.
What is deflationary tokenomics
To escape this phenomenon, demand for tokens must trend upwards consistently at a higher degree than the company needs to recirculate them, and the effect of that on price has to be strong enough to reverse the violation of the law of supply for speculative goods in a bear market.
From the model described above, it is clear that the company is participating positively on the demand side of the market, but negatively on the supply side. A new model was necessary to ensure that the activities of the company reflect positively on both sides of the market.
Token supply deflation is a mechanism that ensures that the company can generate demand for tokens in the market, and reduce supply at the same time.
What is deflationary tokens
Right now, miners make their money through payments for generating new coins, but once the hard cap is reached, the only source of revenue will be transaction fees.
Cryptocurrencies with a defined supply aredeflationary by nature. They achieve this status because as long as investors buy and hold the coin, its supply reduces.
As a result, there is an increased number of deflationary crypto assets entering the market today.
What is deflation token
Below is a step-by-step procedure on how to get your hands on any coin from the list of deflationary cryptocurrency:
Step 1. Visit Swapzone and select any crypto from our list of deflationary tokens. Ensure you know the exact amount of tokens you want to buy.
Step 2. Swapzone will pull up all the best exchange offers for you.
Step 3. Input the number of the deflationary token of your choice, select the cryptocurrency exchange that suits you by clicking on the “exchange” button.
Step 4. Input the address where you want to receive the deflationary crypto.
Step 5. There is also an option for a refund address, which is the address where the asset you are swapping for the deflationary token will be refunded.
Step 6. Click on the “proceed to exchange” button to carry out the exchange.
Whats a deflationary token
The purpose of inflationary crypto is to sustain value and encourage network participation
Deflationary crypto works by decreasing the overall supply of the coin over time
Inflationary cryptocurrencies increase in supply over time
Usually has a fixed or limited supply of coins
Inflationary cryptocurrencies have an infinite supply of coins
New units cannot be made at any time.
New units of crypto can be made at any time.
Fixed or limited supply of new coins causes the overall value to increase with time
The more coin units in supply, the more likely they will be worthless
Is Deflationary Crypto Safer Than Inflationary?
Trying to determine which model between the two is safe is difficult as both models have their advantages and disadvantages.
The platform was to generate new demand (shift of the demand line to the right), and this should influence price positively, which in turn triggers token-holders to supply and match the new demand at a price higher than the previous equilibrium.
A flaw in the model is that the company must re-circulate the tokens demanded via its platform, which means that it contributes to the extra supply of tokens in the market, canceling out the price appreciation from the demand (D1 to D2). More importantly, Speculative goods in a bear market create an exception to the law of supply: The lower the price, the higher the number of tokens supplied (flight to safety).
PRIA is an Ethereum token that takes a gamified approach to explore how far we can take an ultra-deflationary monetary policy for digital assets. Here we will take a look at what is PRIA token and the key rules of its tokenomics to understand the game.
What is PRIA Token?
Launched by DeFi Labs, the PRIA project takes onboard innovative decentralized finance (DeFi) ideas from elastic supply assets to incentivize token holders’ continuous market participation.
It works like the following on every transaction: 1.25% is burned, 0.85% goes to the airdrop wallet, and 0.5% goes to the developer. Every 200 transactions the airdrop amount will distribute automatically to everyone who qualifies. You can qualify for the airdrop if you make a trade or transfer of 0.25% of the balance of the airdrop wallet.
To understand deflation we must first define its opposite: monetary inflation. We hear a lot about inflation on the news, but what exactly does it mean?
As the term itself suggests, inflation is an increase in the supply of some value or product.
In the case of currencies in general, we have monetary inflation, which is an increase in the money supply. For instance, in the present day banking system, monetary authorities, namely the central banks, are free to print more money or remove money from the markets whenever they think some aspect of the economy needs a correction.
Cryptocurrencies are the complete opposite of central banking as one of the cornerstones of Bitcoin is decentralization.
As you may know, mining is the process by which more Bitcoins are injected into the markets.
This happens because China has been printing absurd amounts of money on purpose, to increase its exports to Europe and the USA. But Americans want to export too, and so do the Europeans.
The result is a seemingly endless amount of money being printed by central banks in order to boost the stock markets and also to promote exports. This system has led to absurd wealth concentration in the hands of bankers and widespread wealth inequality becoming a global problem.
While the average citizen will work 9 to 5 for a relatively fixed wage, central banks keep printing and pumping money into banks. While an individual investor only has limited amount of purchasing power to allocate for stocks or savings, banks have unlimited spending power and easily overwhelm the average citizen.
As we can see, there are problems both with inflationary and deflationary systems.
Every transaction on the network invites a 4% tax charge which is redistributed as a BNB reward to $BRISE holders.
HOGE is a deflationary token, based across 5 different blockchains that has a 2% tax on every transaction. Of this 2% tax, a portion of it is transferred back to HOGE holders in form of rewards and the rest is burned.
Unlike Bitcoin, HOGE cannot be mined or created. The current circulation of HOGE is all there is and it decreases with every transaction. Therefore, the more the transaction volume, the more the rewards and the faster the burns.
FEG, otherwise known as Feed Every Gorilla, is a hyper-deflationary token that operates on both the Ethereum (ERC20) network and the Binance Smart Chain (BEP-20) network.
The token has a current supply of 42 quadrillion tokens.