Burning
Deflationary supply = stronger demand.
Last updated
Deflationary supply = stronger demand.
Last updated
Burning: The Most Underrated Yet Powerful Mechanism
Token burning is perhaps one of the most underestimated yet most impactful long-term mechanics for any token.
Yes, instant rewards for holders are great—your community receives tokens and SOL immediately. But when part of the token supply is permanently burned, it acts like a delayed reward, continuously benefiting the holder's bags in the long run.
Let’s break it down
Imagine a token with a 5% Community Contribution, where 50% of it is allocated to burning:
Suppose the token launches, grows to a $10M Market Cap and generates $50M in weekly trading volume.
At that pace, ~25% of the total supply is permanently burned in just one week.
These tokens are gone forever—they won’t re-enter the market, won’t be sold, and won’t cause selling pressure.
Now, imagine this effect over a month, six months, or a year. With the right trading volume and project growth, this mechanism can build long-term confidence in your community and create an insane deflationary effect.