Deflationary Tokens

[Inkdull]

Projects with deflationary feature are always over hyped, sooner or later you will start seeing their true figure, I got many deflation tokens through Airdrops and most are now useless, now I have no interest in deflation tokens anymore

[1715123511]

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[FLHippy]

Deflationary tokens don´t make any sense until you give them some value, for example, back them with some luxury assets like gold. Because deflationary means that in the future there will be fewer tokens than now. But, when you think about it people won´t use it because they will be  :)motivated to hold. But you need to give them the reason why hold, why it has a value.

[Taufik blackspade team]

Deflationary tokens don´t make any sense until you give them some value, for example, back them with some luxury assets like gold. Because deflationary means that in the future there will be fewer tokens than now. But, when you think about it people won´t use it because they will be  :)motivated to hold. But you need to give them the reason why hold, why it has a value.

the reason is the use-value of real platform development. when they have a platform that continues to grow and demand continues to grow, while the supply of coins decreases it will strengthen their prices. some assets like that of course will make investors hold and not trade it in the long run.

[RomiM]

Inflation in a controlled manner always bring rise in price as we have seen in bitcoin. On the other hand ethereum has no limit of how many eth will be generated and is also doing good. Deflationary tokens like BOOM can also make a good impact since they are bringing down the total coins in circulation. They are new that's y such coins have to answer so many questions.

Ether is a utility token which anyone with ERC tokens will need it when sending. Anyone engaging in ERC tokens and trading will need ETH that is why its not going zero. But with Boom its yet unclear what its purpose but just deflationary token not very different to the team burning the own tokens milestones after milestones yet the price didn't change over time.

That's true. I think burning down token is a utility in itself. Not many coins are burned on every transaction just 1%. People are scared of them like they will be gone the next day they work up. I am keeping an eye on them as well as in my portfolio also.

[Abiky]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

To be honest with you, most deflationary coins are simply not worth the investment. Only a small few like Bitcoin, ETC, and Maker DAO, are worth a shot. This is largely because value doesn't necessarily come from deflation, but rather usability. If a cryptocurrency or token is deflationary but has no real use cases for the mainstream world, it'll simply become worthless in the long run. BNB is another deflationary token in which Binance burns a portion of its supply every once in a while. Besides this, the token is widely used on the Binance exchange for fee discounts, token creation on Binance Chain, and more. As it combines deflation + utility, it has managed to obtain a relatively high price on the market.

If you pick the right tokens that are deflationary by design, your investment will grow by a large margin over time. Bitcoin is well-known to be the best deflationary cryptocurrency you can invest right now. By playing your cards right, you'll be able to live a steady financial life for the foreseeable future. Remember, "not all that glitters is Gold". Just my thoughts

[kakamrul]

A cryptocurrency with a continuously depreciating supply in its blockchain is called a deflationary cryptocurrency. Deflation can be accomplished through burning some percentage of a coin being minted, buyback and burn, buyback and hold, and many more.

[Gayong88]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

Now many people choose the strong and well known in an exchange such as BTC and ETH. Well, all you have to do is run and work. Regarding your question above there are weaknesses so it ends like you said.

[Mr. R2712]

There's only one deflationary coin that will have a future tho, and that is BOMB token. It has the first mover advantage, and the team is working on it now and then, so in the long term it will be interesting to see where it goes. I have like 100 of them and I'll keep them there for a few years as an experiment, and see what happens.

[kingzpro]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

I think the concept is good but new coins even with deflationary model are not worthy to invest because they have literally no or very low transaction volume so it will take years to see some deflationary effect.
I will only suggest if btc and eth network upgrades and applies this model because both these networks have huge huge amount of daily transactions and this model will really work and investors will be massively attracted because profit will be almost guaranteed with this model, if implemented on the biggest used blockchains.

[RomiM]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

I think the concept is good but new coins even with deflationary model are not worthy to invest because they have literally no or very low transaction volume so it will take years to see some deflationary effect.
I will only suggest if btc and eth network upgrades and applies this model because both these networks have huge huge amount of daily transactions and this model will really work and investors will be massively attracted because profit will be almost guaranteed with this model, if implemented on the biggest used blockchains.

If you see statistics of BOOM at CMC they are not very bad https://coinmarketcap.com/currencies/boom/ . With this volume, there is fair chance for deflationary coins to go up in days to come. Just keep your eye open, every coin has a day.

[filterMX]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

Maybe the team has a separate goal that we never knew, but so far I haven't found a deflation token where coins are destroyed every time a transaction is made, so if I may know what is that token?

that's also true because every action has a purpose, but without knowing the name of the token we can't analyze it further, to find out the truth about the token that the PM talked about

[RomiM]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

Maybe the team has a separate goal that we never knew, but so far I haven't found a deflation token where coins are destroyed every time a transaction is made, so if I may know what is that token?

that's also true because every action has a purpose, but without knowing the name of the token we can't analyze it further, to find out the truth about the token that the PM talked about

That may be true but this doesn't mean that there is no chance for a deflationary token to go up. initially, BTC also has only one purpose i.e. to transfer funds, and nowadays any altcoin with the only use case of payment method is not welcomed. Likewise deflationary is a new concept and will take time to digest.

[WatChe]

Going through the thread I realized that there is mixed opinion about the deflationary tokens. The concept is attractive yet new to be absorbed instantly by the investors. Just keep an eye on its volume and price, it may shoot someday.

[AntChe]

We need to carefully do research before we made our mind in investing in any altcoin. Today's crypto market is overloaded with altcoins and there is immense competition. Deflationary token's idea is innovative and I don't think it's wise to ignore this emerging coin.

[bitgolden]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

Only speculative purposes to swallow your hard earned money. When you are not sure about the purpose of creating such tokens/coins then question of considering about its worthiness to invest not at all making any sense in my opinion. These tokens/coin is not ticking the very first criteria then there would be no need of going further to analyze them for the reason of investing with them. It is just multiplying your risk levels rather than your analysis must work in a way to eliminate the risks as much as possible.

I remember there was another topic about devs' plan on burning tokens on periodic manner and in that discussion this forum members have concluded like burning tokens cannot be a progressive action toward the development of the project. So, creating artificial deflation should not be encouraged. You must ignore the projects which are having "destroying" plans.

[AntChe]

I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time.
My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?

Only speculative purposes to swallow your hard earned money. When you are not sure about the purpose of creating such tokens/coins then question of considering about its worthiness to invest not at all making any sense in my opinion. These tokens/coin is not ticking the very first criteria then there would be no need of going further to analyze them for the reason of investing with them. It is just multiplying your risk levels rather than your analysis must work in a way to eliminate the risks as much as possible.

I remember there was another topic about devs' plan on burning tokens on periodic manner and in that discussion this forum members have concluded like burning tokens cannot be a progressive action toward the development of the project. So, creating artificial deflation should not be encouraged. You must ignore the projects which are having "destroying" plans.

You have great analysis. But I slightly differ from you that since deflationary coins are more volatile than traditional crypto, its good to keep some space reserved for them for long run. Every coin has a day and you don't know at the day for BOOM.

[ZincUnrated]

The bubble has long burst for deflationary tokens. While it was good when it lasted, deflationary tokens and projects weren't designed in such a way that they can last the test of time in the industry. While some of them did very well, some have continued to struggle leading to their complete phasing out. Several deflationary projects that were developed during this period neither had any use case or future. They tailored on the success of Bomb token hence they died a natural death when things got stuck and couldn't continue. Today, most of those projects are no where to be seen, they were all shortlived.

[MadeMen]

The era of deflationary tokens are past. I remember when deflationary tokens was the big thing and people were basically holding them simply because of the fact that the tokens had a rapid increase in value. There was basically no use case for all the deflationary tokens I read about. I knew it was just a bubble and won't stand the test of time. I still hold some deflationary tokens, but they are as good as worthless.

[AntChe]

I may differ a bit. I think the era of deflationary coins is yet to start. It's too early to say that they won't go up, only time will tell. To me, these are sleeping coins and they may explode at any time. I can have a safe bet of deflationary coins. 

[JeotQ]

I think deflationary tokens era isn't over because the use case hasn't been used professionally by good developers, just take a minute to do research on many dead deflation tokens you will see that the only one they focus on is the deflation feature, no other good use case implemented in the projects