Although it can be difficult to find a complete list of deflationary cryptocurrencies available to buy, sell or trade, acquiring a deflationary token may provide a wise investment. In order to help facilitate researching and deciding on the best deflationary token to meet your personal financial goals, we have compiled a complete (or as complete as we can determine) list of deflationary tokens. This list is at the bottom of this article.
What are Deflationary Tokens
For individuals looking to invest in cryptocurrency one of the best investments may be the deflationary token. These tokens may be hyper-deflationary, deflationary utility tokens or simply a deflationary token. Although there are differences, all these coins are created with a set number of tokens to be created and that initial limit will never be increased. This creates a deflationary currency where supply will decrease over time (or remain the same) even as demand for a deflationary coin may increase, thus making the token more valuable over time.
The deflationary utility token is a financial instrument used primarily for raising funds. The deflationary asset is a blockchain-based asset people buy with the intention of using it in the future. Deflationary utility tokens are tokens designed to incentivize holders, and they are programmed to reduce supply over time. Accordingly, the token’s circulating supply declines over time.
These tokens have been making a buzz in the crypto space lately and it makes one wonder whether deflationary tokens are doing better than other tokens in the market.
Deflationary Tokens Explained
Deflationary tokens are tokens fashioned to reduce in supply over time. That is to say, the circulating supply of the token reduces as the years pass. The essence is to prevent the market from being flooded with the token while improving the value of the token. A good example is a coin that reduces its supply by 2% every year. If there were 20,000 coins in supply in 2019, by 2020 it will be 18,600 coins, 18,228 coins by 2020, 17,863.44 coins by 2021, and so on. As the coin becomes more limited in supply, its demand will increase and so will its value.
Crypto projects of the deflationary token model achieve their goals in different ways. However, the two most widely used methods to remove coins from the market are:
The Buy-Back and Burn Method
This is where the company in charge of the project buys back a good portion of its coins from the market and burns them. It burns the coins by sending them to a dead address. So, it lowers the circulating supply by destroying tokens. This results in an increase in the value of the coin because the demand remains the same (or increases) while the supply has reduced. The top tokens using this method are BNB, FTT, and CAKE.
The Burn On Transaction Method
Here, the contract of the coin specifies that a percentage of the tax collected from on-chain transactions will be burned. In other words, on-chain transactions involving the coin attract a tax and a percentage of the tax collected is burned. This happens automatically because it is integrated into the coin’s contract. Also, its success depends on the trading volume of the coin because deductions will only be made when transactions occur. So, the higher the trading volume, the more tokens are removed from the total supply. Thus, driving value to token holders as tokens are constantly removed from circulation while demand remains constant (and possibly increases). Some tokens that use this method are SAFEMOON and THUGS.
The Top Deflationary Coins of 2022
Bitcoin (BTC)
The first coin on my list of deflationary tokens is a tricky one as most persons believe that bitcoin is both inflationary and deflationary. Inflationary in the sense that more coins are added to the supply via its mining process and deflationary because miners’ rewards are halved every 4 years. Also, the maximum supply of Bitcoin contributes to its deflationary model. There will only ever be 21 million Bitcoins mined.
Once that is achieved, no new coins will be created, and no more block rewards will be given.
Additionally, the circulating supply of BTC will reduce when private keys are lost and coins become irretrievable.
TIA Utility Token
The $TIA token is issued by the Lichtenstein Cryptoasset Exchange (LCX). The TIA Token for Tiamonds was developed, created, and deployed by LCX. In its design, TIA Token is a deflationary utility token. The TIA Token is a community-first and fairly launched DeFi Token. As time passes, TIA Tokens will become scarcer.
For more information about the TIA Token, read this article
Binance Coin (BNB)
BNB, the native token of the Binance Network is also a deflationary token. It uses the Buy-Back and Burn approach. At every quarter of the year, the team at Binance burns a fraction of the BNB coin. They do this by repurchasing BNB from its investors with more than a 20% profit made in the last quarter and then send them to an unspendable address. Initially, BNB had a total supply of 200 million coins. The plan is to burn half of its supply so they eventually will have only 100 million coins.
The last burn (16th BNB burn) happened in June 2021 and a total of 1,296,728 BNB (roughly $393,673,653.52) was burned. Right now (16/08/2021), the total supply of BNB is 168,137,036 coins.
Crypto.com (CRO)
CRO is the native token of Crypto.com, a renowned cryptocurrency exchange. Prior to the launch of its mainnet in March 2021, Crypto.com burned 70 billion CRO (roughly $10 billion). Out of the 70 billion coins, 59.6 billion CRO were initially burned while 10.4 billion will be burned monthly as tokens are unlocked from smart contracts. Before the burn, CRO was priced at $0.08, now, 4 months after the burn, the price was approximately $0.15, and as of early March, 2022 the price was approximately $0.38.
Ripple (XRP)
XRP is another popular coin. Ripple charges some fees to conduct transactions. These fees are neither returned to a central authority nor paid as a reward to the validators, rather, they are burned, making XRP a deflationary token.
PancakeSwap (CAKE)
CAKE is the native token of the PancakeSwap ecosystem. It does not have a maximum supply which makes it inflationary but it then employs a Coin Burn mechanism to keep its supply in check. CAKE’s supply is reduced per block at (-18), and per day at (-560,400).
Solana (SOL)
Solana is one of the latest blockchains that is making waves in the cryptocurrency space. Just like Bitcoin, it is both deflationary and inflationary. A good look at its coin distribution and capless supply shows that it is inflationary. But the burning of Solana transaction fees (paid in SOL) makes it deflationary.
Litecoin (LTC)
Here’s another Bitcoin look-alike. Litecoin mining rewards are halved every 4 years. This means the production of LTC decreases over time and will eventually stop once the supply reaches 84,000,000 coins.
Bitcoin Cash (BCH)
BCH has a capped supply of 21,000,000 coins, it halves miners’ reward every 4 years, reducing the circulating supply. Moreover, Bitcoin Cash has seen its price value rise as a result of coin burn. When Antpool (a cryptocurrency mining pool that validates nearly 10% of BCH’s transactions) announced the burning of 12% of the BCH it received as block rewards in 2018, the coin’s price went up significantly.
Plus, Wormhole, a blockchain project also burns BCH to create an equivalent amount of its native token WHC.
Terra (LUNA)
LUNA, is the native coin of the Terra ecosystem. It is the stability mechanism behind the Terra stablecoin. The maximum supply of LUNA is 1 Billion and all were issued at genesis. Therefore, as the demand for Terra stablecoins increases, the circulating supply will only reduce over time.
Polygon (MATIC)
MATIC is the native token of the Polygon Network. It serves two major purposes: to pay transaction fees and to participate in its PoS consensus mechanism. According to its docs, a percentage of the transaction fee in every block is burned to provide constant support for the coin’s value.
Ethereum Classic (ETC)
ETC is an interesting deflationary token. Its block reward was initially set at 5 ETC and decreases by 20 percent every 5 million blocks (approximately every 2.5 years). Also, the total supply of ETC is not expected to exceed 230 million coins.
SafeMoon (SAFEMOON)
SAFEMOON is a deflationary token that was created to solve the problem with ‘farming’ rewards, where early stakers earn from the highest APYs and newcomers don’t earn much. One way this goal is achieved is through manual burns. Additionally, it employs the Burn On Transaction approach. Trading SAFEMOON attracts a 10% transaction tax charge. 2.5% of this charge is sold by the contract into BNB (burning).
Tenset (10SET)
10SET is the Tenset’s native token and it is deflationary. There is an attached 2% fee for every 10SET transfer. Half of the fee is burned to reduce the number of 10SETs in circulation.
Filecoin (FIL)
FIL is the native asset of the Filecoin blockchain, an open-source, decentralized storage, and content delivery network. The coin has a capped supply (2 billion FIL). Also, mining rewards for Filecoin are halved every six years. Plus, transaction fees paid in FIL are burned, reducing the circulating supply. Some FIL coins are also burned to fund on-chain computations and bandwidth as network message fees.
TRON (TRX)
TRON is a blockchain network that is committed to promoting the decentralization of the Internet. Its native token — TRX, transited from inflationary to deflationary in April 2021. This was achieved by cutting the total supply of TRX from 101,678,790,175 to 101,673,029,723. The action was in response to a proposal from the TRON community.
BOMB (BOMB)
BOMB describes itself as the ‘world’s first self-destructing currency’. In every BOMB transaction, 1% of the tokens are destroyed. At this rate, none of the 1 million BOMB tokens will be left by 2034. This coin is more of a social experiment than an everyday currency. Though it has made some investors smile, its price action shows that deflation does not automatically produce an increase in price.
NUKE (NUKE)
NUKE is another popular deflationary token. It has a 1 million max token supply with a 2% burn rate. But the burning is estimated to stop around 2036. NUKE is a lot like BOMB but it intends to have real applications, starting with the launch of a native DEX.
The Complete List of Deflationary Cryptocurrencies 2022 from A to Z:
Absorber (ABS)
Adventure (TWA)
AfterShock V2 (SHOCK)
AntiSeal (ANTISEAL)
Ash (ASH)
AutoBurn (ABN)
Baby Shiba (BHIBA)
Baby Trump Token (BabyTrump)
BabyCat (BABYCAT)
BabyMoon | t.me/BabyMoono (BabyMoon)
Ballbag (BALLBAG)
Basix (BASX)
BasketCoin (BSKT)
Binance Coin (BNB)
Bingus (BINGUS)
Bishu Finance (BishuFi)
Bitcoin (BTC)
Bitcoin Cash (BCH)
BitcoinSoV (BSOV)
Black Kishu Inu (BISHU)
Blaze Network (BLZN)
Bobo Cash (BOBO)
BOMB (BOMB)
BOOM (BOOM)
BOWIE (BOWIE)
BullDogge (BLDG)
BunnyVerse (BNV)
Burn Rebalance (BURNR)
BurnX 2.0 (BurnX20)
BURNY (BRN)
Carbon (CUT)
Cardano (ADA)
CATOSHI (CATS)
Cavapoo (CAVA)
Civitas Protocol (CVT)
CliffordInu (CLIFF)
CoinBurn.money (CBN)
Comet (COMET)
Cowboy.Finance (COW)
CumRocket (CUMMIES)
Crypto.com (CRO)
CRYPTO PHOENIX ($CPHX)
Crypto Shield (SHIELD)
cVault.finance (CORE)
Defiance (DEF)
DeFiat (DFT)
DEFLA (DEFLA)
DeflationarySimpleToken (DST)
Degen (ADGNZ)
DegenerateToken (DGNT)
Direwolftoken.com (DIREWOLF)
Dogo Coin (DOGO)
DoYourTip (DYT)
DYNAMITE (DYNMT)
Ebank Token (EBT)
Efinity Token (EFI)
Eterbase (XBASE)
Ether Clown (KLOWN)
Ethereum Classic (ETC)
Ethereum Pro (EPRO)
Ethereum Shillings (eSHILL)
EthLyteToken (EtLyteT)
ETHplode (ETHPLO)
EverGive (EVG)
EverRise (RISE)
EveryApe.com (EVAPE)
FailToken (FAIL)
FEGtoken (FEG)
Fifty Dogge (FTDG)
Filecoin (FIL)
Firemoon (FIRM)
Fission Cash (FCX)
Floki Bone (FLOKIBONE)
FOMO LAB (FOMO)
ForeverBlast (FEB)
Fraktionalized THUG 2856 (THUG)
FREEMOON (FREEMOON)
FTX (FTT)
GELD Finance (GELDF)
Global (GUSDT)
GOLDEN TOKEN (GOLD)
Green Candle Man (CANDLE)
Grenade Token (GREN)
Hanzo Inu (HNZO)
Hold. (HOLD)
Hydra (HYDRA)
HYPE Token (HYPE)
Island (ISLE)
ITO (IUT)
JusDeFi (JDFI)
KCCPAD (KCCPAD)
Klee Kai (KLEE)
Klingons.eth.link (KLING)
Kombai Inu (KOMBAI)
Labra (LABRA)
Lion Token (LION)
LiquidX (LIQX)
Litecoin (LTC)
Little Tsuki Inu (liltk)
LOCK Token (LOCK)
loser coin (lowb)
luckyinu (LUCKY)
Malamute.Finance (MALLY)
MANGOJUULPOD (MJPfi)
Mero Currency (MRO)
Metahero (HERO)
METAWHALE BTC (mwBTC)
METAWHALE GOLD (MWG)
Molten (MOL)
Momentum (XMM)
Moon Pug (MOONPUG)
MultiChainCapital (MCC)
Native (NUT)
Nature Boy Inu (WOOINU)
Nuke (NUKE)
Nuclear (NCA)
OneSwap (ONES)
Opti (OPTI)
Pancake (CAKE)
Pekker Token (PKR)
PolkaBridge (PBR)
Polkamoon (PMOON)
Polygon (MATIC)
Porkchop (CHOP)
PowerCore (POW3R)
Profile (PUT)
PRJCT (RED)
pTokens SAFEMOON (pSAFEMOON)
PUGLIFE (PUGL)
PYRO Network (PYRO)
Quana (QNTU)
Reflector.finance (RFCTR)
Refract (RFR)
Rewind.Finance (RWI)
RichQuack.com (QUACK)
Ricochet.space (RICO)
Ripple (XRP)
Ruletka (RTK)
Safemoon (SAFEMOON)
SafeMoon Inu (SMI)
SafeSun (SAFESUN)
Sailor Moon Inu (Sailor Moon)
Sanshu Inu (SANSHU)
Satanic (Sat)
SatoshiSwap (SWAP)
ShibaMax (SMAX)
ShibaMelon.com (SHELON)
Shikoku Inu (SHIKO)
SHINJIRO (SHINJIRO)
Shortage (RTG)
Shuffle.Monster V3 (SHUF)
SneakerBlast.finance (SBLAST)
SOCIETY OF GALACTIC EXPLORATION (SGE)
Solana (SOL)
Space Corgi (SCORGI)
SPACE HOGE (SOGE)
SPARK (SPRK)
Spectre.ai (SXUT)
Spore (SPORE)
Spray Finance Token (SPRAY)
spraytoken.net (SPRAY)
STATERA (STA)
SurfEx (SURF)
Taboo (TABOO)
Tardigrades.Finance (TRDG)
Tenset (10SET)
Terra (LUNA)
Thedogelonfather (TDEF)
Thursday Ninja (THUR)
Tia Token (TIA)
Tokyolympic (TKYO)
Tribute (TRBT)
Tron (TRX)
TRYfinance (TRY)
Tsuki Inu (TKINU)
ULTRA (HOT)
United Doge Finance (UDOG)
Vanilla Network (VNLA)
Vampire Inu (VAMP)
Viking Swap (VIKING)
Void (VOIDX)
Volt Inu (VOLT)
Willy Musk (WMUSK)
WOLFYCOIN (WOLFY)
Xiglute Coin (XGC)
YFBinance (YFBI)
Yummy (YUMMY)
Zero (ZUT)
Zin Finance (Zin)
ZUNA (ZUNA)
