Token burns are hugely important for crypto. They help limit supply and keep the price strong over time. Scarcity is hugely important for currencies, and continued scarcity means that existing coins in circulation become more valuable over time. But scarcity is something traditional fiat currencies have not managed to achieve recently, due to quantitative easing. By scrapping the gold standard, there is no true store of value for currencies like the dollar, and more can be printed whenever required. This makes your dollars worth less over time, as supply is increased – and it leads to inflation. You’ve probably already noticed inflation becoming a huge issue in recent months.
So a high-quality currency needs to be deflationary, and it needs to become increasingly scarce over time. Thankfully, some crypto projects look to solve these issues as they come up with digital currency ideas that could rival traditional currencies like the dollar. One of the best projects we’ve seen recently that has managed to create the perfect model for deflationary burn tokenomics is Uniglo. It has the potential to overtake major altcoins like SHIB and DOGE. Let’s have a look at why…
Uniglo Has Created an Incredibly Deflationary Model
Uniglo employs a unique dual-burn mechanism to increase scarcity over time, and make the currency completely deflationary. There’s even more power in this deflationary model, as GLO’s price is backed by a 1:1 store of value thanks to its own vault. This vault invests in a range of assets with funds that are raised from a sales tax. And these assets are a diversified range of products that include crypto, NFTs, and even real-world assets like gold. This helps make the system completely diversified and not over-reliant on the performance of any one asset. It also gives holders the chance to own a slice of items that previously only the richest in society would be able to get hold of.
All these tools make Uniglo one of the most deflationary coins around. It has real potential not just in the crypto world, but in the mainstream currency world too.
What About Shiba and Dogecoin?
Both these coins have had an incredibly successful year or so. Shiba recently announced increased burns as well, and passive income rewards for holders who want to burn their coins. This is much needed for the long-term viability of the token, but their burn mechanism isn’t as strong as GLO’s.
One thing both DOGE and SHIB have excelled in is marketing. They’ve managed to lead the way in social media marketing and showed the rest of the crypto world what can be achieved in this space. Other projects are taking note, and trying to emulate the successes of both SHIB and DOGE.
GLO’s ultra burn mechanics make it one of the most deflationary coins out there, at a time when the wider economy is crying out for a solution to deflation. GLO could be it.