Gate Square “Creator Certification Incentive Program” — Recruiting Outstanding Creators!
Join now, share quality content, and compete for over $10,000 in monthly rewards.
How to Apply:
1️⃣ Open the App → Tap [Square] at the bottom → Click your [avatar] in the top right.
2️⃣ Tap [Get Certified], submit your application, and wait for approval.
Apply Now: https://www.gate.com/questionnaire/7159
Token rewards, exclusive Gate merch, and traffic exposure await you!
Details: https://www.gate.com/announcements/article/47889
How does the deflationary mechanism actually work? Here's the real experience.
In these types of tokens, each transaction triggers a burn logic—5% is burned on buy-ins, and the same 5% is burned on sell-outs. It sounds simple, but there's an interesting aspect: every sell operation by market participants essentially helps reduce the circulating supply. From another perspective, it's like the market itself is participating in chip clearing.
What happens when the circulating supply keeps decreasing? The supply side tightens, while changes on the demand side depend on market sentiment. Historical cases show that these tokens have indeed experienced significant drops in supply, followed by price increases. The mechanism itself creates an environment where "more trading leads to greater scarcity."
Of course, this mode relies on active trading. Once the market cools down, the burn rate slows, and the entire logical chain can break down. So, the key issue isn't the mechanism itself, but whether the market can sustain this enthusiasm.
From an investment perspective, understanding how these tokens operate is very important. Whether to participate early, wait for confirmation, or stay on the sidelines—each choice carries different risks and rewards. Making your own judgment is much more important than following the crowd.