What are Hyper Deflationary Tokens?

With easy access to blockchain technology and its many sub-components and use-cases, token development, crypto startups are creating their own crypto assets or tokens and using traditional economic principles to plan their new blockchain economy and management of token value. Due to this, the market becomes crowded and there are thousands of cryptocurrencies that have their own value and purpose.

However, almost all token models usually fall into one of two categories: inflationary and deflationary. To understand the Hyper Deflationary Tokens, which is a very important term in the case of panKUKU, you need to understand the difference between both.

Inflationary Token Model

This type of token is printed continuously and you can create an infinite amount of tokens continuously. However, there are several variations on the inflation token model, some impose a limitation on the annual token generation, and others are based on a perpetually set schedule.

This model is almost the same as fiat currency, but inflation tokens are more efficient and transparent because of the decentralized mechanism and community. Here, instead of a centralized entity, the community defines the token model.

The deflationary Token Model was introduced to overcome some of the problems of an inflationary token model.

Deflationary token model

If the total circulating token supply gets decreases to a predetermined amount, then it can be called a deflationary token. This decrease in the supply of tokens can be met in ways like buybacks and token burns. The main advantage of tokens with this model is that they restrict the market from swamping too many tokens as token creators create, mine, or sell, more tokens.

In this model, a fixed number of tokens will be minted, and the limit will never change to more. This creates a deflationary currency, so if demand increases, supply will not, and value will rise automatically.

Hyper-Deflationary Tokens

Hyper-deflationary tokens are built to be highly deflationary. This feature is accomplished through a token contract by burning a specific percentage of tokens on each transfer.

It is almost similar to deflationary tokens but burns a large number of tokens. Also, there is no specific measure of the difference between it and deflation.

The crypto market is seeing the rise of a new trend and new model of tokenomics. With the increase in demand, projects are considering hyper-deflationary token mechanisms to incentivize their token holders.

panKUKU — A highly deflationary rewards token

panKUKU (token ticker: KUKU) is a hyper-deflationary reward token. KUKU is the first Suriname Token operating on Binance Smart Chain (BSC) that is based on BEP20 protocol. It may seem inspired by pancake swaps, but it has a better plan for the future, and it will soon become a much larger project and product offering than any other decentralized exchange (DEX) in the market.

The project has numerous features and unmatched opportunities for holders, traders, and investors. It will make trading fun and rewarding, so Check the official website to explore all the opportunities and know more about the project.

Originally published at https://medium.com/@pankuku/what-are-hyper-deflationary-tokens-150d8bef4a24