The crypto space seems pretty intense for both developers and project managers, a project utility use case will depend on how far it can attract new investors to its project, those with a good economic model will thrive to stay ahead leaving behind lagging projects that barely introduce new utility use cases to boost their currency value, with deflationary tokens model introduced various projects have been able to limit excessive token supply by burning up these tokens circulating supply these has led to price stabilization in such projects.
concept of deflationary token
An unlimited supply in traditional fiat currencies can lead to high inflation, hiking prices of goods and services, and making the exchange of services high for average users.
Blockchain technology fixes this excessive flow of local cash and cut down circulation by introducing a burning concept (deflationary tokens) this helps any mentioned project management team to reduce token circulation using a buyback model, any token that has undergone a burning process will be sent to void address, where it can't be accessed this in turn, will balance the demand and supply of such token.
The buyback mechanism depends on factors such as liquidity pools generating transaction fees this generated revenue can be used by a project team to buy back and burn circulating token supply.
wox-exchange token
Several exchanges in the crypto-verse have recognized the need for a buyback strategy as vital means of improving their token value here wox-exchange is a DeFi base platform that provides liquidity pools, (wox-trx) staking, and other interesting features yet to be integrated, the exchange recently announced its plan for implementing burning strategy on it's a platform.
Here is an original link source to have a compressive understanding of how they plan to drive wox price stability the token will be backed by TRON (TRX) each wox token will be equal to one TRX although the price of wox is not completely pegged to that of TRX which means in future the price of wox can exceed that of TRX in market price value.
Deflationary tokens have their advantages as they can improve and drive a project value, reduce circulation supply and create demand.
Join Wox exchange on discord to stay updated with their latest info
https://discord.gg/C3asZDt56f
