deflation
- noun
- /dɪˈfleɪʃən/
- Jargon
:
deflación
- After the smart contract burned millions of coins, the community welcomed the resulting deflation.
So what ends up is technology requires A digitally native currency that allows for deflation.
- So what ends up is technology requires A digitally native currency that allows for deflation.
Examples
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Some economists warn that token deflation can lead to hoarding and reduced network activity.
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The project's constant token buybacks produced a steady deflation that increased scarcity and investor interest.
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The deflation of the token supply is crucial for its value.
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Many investors are concerned about the deflation happening in the crypto market.
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After the project implemented its token burn strategy, the deflation of the total supply led to a dramatic rise in token value.
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With each successful burn of tokens, the community experienced noticeable deflation, enhancing their holdings' scarcity and desirability.
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Investors often view deflation in cryptocurrency as a positive signal, indicating potential growth due to decreasing supply.
Synonyms
40
5.3
A decrease in how much of something is left, often until it is used up
1
5.2
A slow decrease in size, number, or strength
How Scarce
Surface Forms
Morphology
deflation = deflate (semi-transparent) = de + flate + ion
The cryptocurrency sense (decreasing total token supply) is an extension of the economic/technical sense of 'deflation' and is predictable for users familiar with that domain but not for all learners.
Etymology
Deflation comes from the Latin parts de- ('down' or 'away') and flate (from flare, 'to blow'), the same root as inflation. In cryptocurrency, deflation means the total number of tokens becomes fewer over time because some are removed, like letting air out so there is less left.