🔥 What are deflationary cryptos and why do they matter?
Most traditional (fiat) currencies lose value over time because central banks print more. This is called inflation.
In the crypto world, there are projects with an opposite model: deflationary.
👉 Their total supply decreases over time.
👉 There are fewer tokens in circulation.
👉 Result: if demand remains stable or increases, the value of each token can rise.
🔑 Classic example: $BNB with its quarterly burn mechanism. Each burn reduces the available supply.
⚡ Advantages:
Lower supply can sustain price in the long term.
Encourages HODL.
⚠️ Disadvantages:
Does not guarantee price increases (if there is no demand, it is worthless).
Some projects use the term "deflationary" just for marketing.
💡 Hacker tip: Before investing, check the whitepaper and see if the burn mechanism is documented in the code or if it depends on manual decisions from the team.
👉 If you are new, leave me a comment and I will explain step by step how to read a smart contract and confirm if there really is a "burn"? I will prepare a mini-tutorial.
