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.
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VitalikFanboy42vip
· 6h ago
Sounds good, but the key is still having someone to take over.
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GweiWatchervip
· 7h ago
To be honest, calming down is just a game of hot potato.
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WalletDivorcervip
· 7h ago
It sounds like a Ponzi scheme in disguise --- Early investors made a killing, but the later entrants ended up crying --- The destruction mechanism looks powerful, but if no one trades, it's doomed --- I've seen this trick before; it always ends with liquidity drying up --- Basically, it's a gamble on how long the market hype can last --- It's that old trick of "the more you burn, the more valuable it gets" --- The key is whether there is real demand; if not, it's just air --- Feels just like the BURN tokens back in the day; the ending is the same --- No matter how perfect the mechanism is, it can't withstand people's loss of confidence
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CryptoHistoryClassvip
· 7h ago
ah here we go again... "越交易越稀缺" sounds familiar? lemme check my charts from 2021... yep, same playbook, different ticker. the moment volume dries up this whole thing collapses like a house of cards. we've seen this movie before
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MerkleMaidvip
· 7h ago
Honestly, once trading volume stops, this system is useless.
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