Token deflation has become a sought-after strategy in the cryptocurrency space, as it can drive scarcity and increase the value of a digital asset. Various projects are adopting these strategies to stimulate price appreciation and create a more attractive investment. Here are the top methods used for token deflation: Burn Mechanisms: Many projects employ token burn mechanisms where a portion of the tokens in circulation is intentionally destroyed or “burned.” This reduction in the total supply increases scarcity and theoretically makes each remaining token more valuable. Binance Coin (BNB), for example, conducts regular token burns based on trading volume, effectively
The post Top 5 Strategies For Token Deflation: Fueling Cryptocurrency Price Appreciation appeared first on The Merkle News.
Inflation in China registered an increase of 0.1% year-over-year in April, according to numbers from the National Bureau of Statistics of the country, falling below expectations. Some analysts are already warning about the dangers of deflation, even calling on the Chinese government to deliver cash handouts in order to push consumer demand. Low Inflation Numbers […]
After the transition from proof-of-work (PoW) to proof-of-stake (PoS), Ethereum’s annual issuance rate has been reduced to negative 0.057%, according to statistics 158 days after The Merge. The metrics indicate that more ethereum tokens have been removed than issued, and if the chain were still under PoW consensus, 1,823,678 ether would have been minted to […]
Following the United Nations Conference on Trade and Development (UNCTAD) report that the U.S. Federal Reserve should stop raising rates, Ark Invest CEO Catherine Wood has published an open letter to the U.S. central bank asking the institution to stop raising interest rates. Wood says that the “unprecedented 13-fold increase in interest rates” has not […]
Billionaire Jeffrey Gundlach, aka the Bond King, has shared his view on when to buy cryptocurrency. “You need a true Fed pivot,” he stressed. Gundlach also warned about the increasing risk of deflation, noting that it’s time to be bearish on the stock market. Jeffrey Gundlach on Fed Rate Hikes, U.S. Economy, and When to […]
This past April, records show that 19 million bitcoins have been mined into existence and 133 days later, there are 1.88 million bitcoins left to mint today. The network’s block subsidy halving is expected to occur on or around April 20, 2024, as there are less than 91,000 bitcoins left to mine until that point. […]