Deflationary Tokenomics in cryptocurrency

[Golden9]

When a coin is said to have deflationary tokenomics, it means that the supply decreases over time, which can happen through various ways. Most times, it through burning of the coins.

A deflationary tokenomics helps in increasing the price by decreasing supply. Some coin that uses this was Luna before it crashed. BNB is also burnt quarterly to reduce the supply.

A coin with deflationary tokenomics certainly holds interest for a lot of investors.

 

[riberet19]

Well a deflationary tokenomics can certainly help the price to rise but not only that, we also need a stable or rising incoming demand for the token for the price to rise, if there is no capital or interest in the token there will be no price rise, To that must be added a usability so that the capital can come.