PussFi deflationary model: Token Burn process

in PussFi 🐈22 days ago

Assalamu Alaikum


How are you? By Allah's grace, I'm doing very well.

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The PussFi ($PUSS) token is built on a well-thought-out deflationary model to ensure long-term stability and value retention. The main goal of this model is to continuously reduce the supply of $PUSS tokens in the market. At the heart of this process is the Token Burn mechanism.

1. Limited Supply

The first and main deflationary element of the $PUSS economic structure is its limited total supply (Total Hard Cap). The total supply of $PUSS is strictly limited to only 1 billion (1,000,000,000) units. This is different from tokens like Dogecoin, where new tokens are created every year (inflationary). In the case of $PUSS, no new tokens will ever be created. This limitation automatically makes the token a scarce resource.

2. Token Burn Process

Token burn is the process of sending tokens to a public address (Burn Address) from which they can never be used or retrieved again. It permanently removes tokens from circulation. The burn process in the PussFi ecosystem occurs through utility and usage-based transactions. When users pay $PUSS token fees for various services or transactions on PussFi’s SocialFi platform (PUSSTEEM), NFT marketplace, or gaming ecosystem, a certain portion of that fee is sent to the burn address. When content creators spend $PUSS to increase the visibility of their posts, a portion of those tokens can also be burned. This also helps reduce the supply of $PUSS as it is used. In the future, the $PUSS DAO (Decentralized Autonomous Organization) may decide to burn a portion of the community funds at a certain time through voting, or after achieving a certain milestone.

3. Impact on Price and Rarity

The token burn process has a strong positive impact on the market price of $PUSS. As supply decreases, the token becomes rarer. According to the fundamentals of economics, when the supply of an asset decreases but demand remains the same or increases, its value increases. The burn process ensures that $PUSS is not a short-term meme coin, but rather its economic model is designed to support long-term price growth. It increases the propensity of investors to hold the token for a long time.

4. Other supply-reducing factors

While staking does not permanently destroy tokens, it does significantly affect supply. When tokens are locked for $PUSS staking and delegation, they are temporarily removed from the market. This reduces the circulating supply, which helps to keep the price stable.

Conclusion

In conclusion, the token burn and limited supply model of $PUSS makes it a strong deflationary token. Since this process is directly linked to the utility of $PUSS, the amount of token burn will increase as the ecosystem usage increases. This provides a strong economic foundation to help PussFi achieve long-term success. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

Me behind the camera & keyboard

I’ve always loved sharing my passions with you — from crypto and movie reviews to photography, storytelling, and blogging. Now, continuing that creative journey, I’ve stepped into a brand-new world — Gaming ! 🎮 | 🎥 On my YouTube channel Bokhtiar The Survivor — I’m consistently working to bring you the raw thrill of my gaming experiences — the emotions, the excitement, and those unforgettable moments that make every game feel alive.

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