A new field of economics called, “Token Economy” or simply “Tokenomics” has emerged within the blockchain space.
Tokenomics is the science of token economy which consists of a set of rules that governs a cryptocurrency's issuance, supply and how it trades within a “DEX” “AMM” trading system.
Of which there are three categories: Inflationary, Deflationary and Hyper-Deflationary.
When tokens are printed continuously, without any limit, to the number of tokens which a project can create!
There are many variations, some limit token generation annually. Some release tokens on a perpetually set schedule. The downside to this model is the projects can and do print tokens forever! Inflationary models are similar to fiat currency, and devalue a projects token. Which is inevitable, due to the endless supply of printed tokens being dumped on the market over time. To overcome the many problems that are associated with this model, deflationary token models have been put into place.
Examples of this are: Ether, which is the native cryptocurrency of Ethereum (ETH) and Dogecoin’s (DOGE) of which has no supply upper limit, which means it can print coins forever!
When a tokens fixed maximum supply decreases to a predetermined amount over time.
This reduction in supply can be achieved via token buyback and burn. The benefit of which restricts the market from being swamped with an endless supply of tokens. As the fixed maximum supply enters circulation within the market over time. Generally accomplished via the buyback and burn of a percentage of each transaction, therefore effectively removing it from circulation. This activity increases the value of the remaining tokens left in circulation. As demand rises, overall maximum token supply cannot.
These token models are utilized in various ways and are frequently considered a store of value, similar to precious metals and or equated to digital gold. Some investors even consider them as safeguards against inflation. As token value should, in theory, rise over time as supply shrinks and demand grows.
An example of this is: The Binance Coin (BNB) token. Issued as an ERC-20 token on the Ethereum network. Having an initial maximum supply of 200 million tokens. Binance conducts scheduled quarterly burn events with the goal of reducing the maximum supply to 100 million (BNB) over time. At the time of this writing there are 155,859,290 (BNB) tokens in circulation.
(A deflationary token model with added value!)
Hyper-Deflationary token mechanisms and mechanics are incorporated, by project developers, as measures to further incentivize investors, community members and support the token user base.
To simplify, think of it in terms of a turbocharger for your car! hyper-deflationary tokens are intentionally designed to be highly deflationary products with the overall community and token holders best interest in mind. True hyper-deflationary token models, put investor and community well being first! This is achieved through various means and is unique to each and every individual project whom elect to utilize the hyper-deflationary token model.
Hyper-deflationary tokens have emerged as a new category in the world of crypto. Offering widely unique tokenomics models, making them quite different from regular tokens, as well as each other. While hyper-deflationary tokens are similar to the regular deflationary token model. Differences are easily identifiable when comparing project tokenomics side by side.
Hyper-deflationary tokens are geared towards maximizing token holder value and user base growth.
As seen in the following example: RickRoll (ROLL) tokenomics creates the perfect “Hyper-Deflationary Token” storm!
RickRoll (ROLL) Token is a, carefully calculated, hyper-deflationary token which incorporates the necessary metrics and mechanics to create the perfect storm for its token holders and investors!
All achieved using an immutable, BSC blockchain technology, smart contract transaction protocol. Containing, hard coded, built-in, automatically triggered, hyper-deflationary token model mechanisms and mechanics. Which execute upon each and every single trade. Under the authority of a decentralized exchange (DEX), automated market maker (AMM) trading system. While adding continuous value to the whole of the RickRoll (ROLL) Token ecosystem using the following customized metrics.
HODL reward
5% of each transaction will be distributed across all holder wallets.
Automatic liquidity builder
5% of each transaction will be added to the RickRoll (ROLL) Token PancakeSwap liquidity pool.
Eternal token destruction
2% of each transaction is sent to the burn address making these tokens gone forever!
Community charity vote
1% of each transaction is sent to a charity wallet. Charity list will be chosen and voted upon via the community. Majority rules.
Anti-dumping mechanism
2% of each transaction is used to buyback tokens, which controls "Hyper-Deflation".
Anti-whale wallet mechanics
1% of the supply is the maximum number of tokens that any one wallet can hold.
Anti-whale transaction mechanics
1% of the supply is the maximum transaction allowed when buying or selling RickRoll (ROLL) Tokens.
These built-in token stabilization mechanisms and mechanics ensure RickRoll (ROLL) Token holders and investors alike receive the best experience that cryptocurrency has to offer.
By having HODL rewards for loyal holders coupled with an automatic liquidity builder, including eternal token destruction, garnished with an anti-dumping mechanism to control pump and dump (P&D) attacks. One can plainly see, developers worked tirelessly formulating the projects tokenomics. All of which allow for the maximization of token holder value and are geared towards user base growth. What better way to top it all off than with a built-in charity wallet. Which allows for the sharing of this hard work with others via a community charity vote. The anti-whale wallet mechanics and anti-whale transaction mechanics are a great feature as well. In unison, they control those nasty whale attacks so many projects are plagued with today.
In Summary:
The RickRoll (ROLL) Token, hyper-deflationary model smart contract automatically rewards all token holders, adds liquidity to the trading pool, destroys/burns tokens, buys tokens back and donates to charity. To top it all off, automatically controls attacks against the project via built-in anti-whale wallet and transaction control mechanics.
These mechanisms ensure that the token supply decreases, leading to scarcity, with the potential of an increase of overall value over time. Making RickRoll (ROLL) Token a completely transparent, community focused and fairly launched product. A digital currency with stable true hyper-deflationary tokenomics providing sustainable long-term value, which is very attractive to investors.