Deflationary Model

This involves the continuous burning of tokens. Several cryptocurrency platforms try to attract users by offering them a vast, almost-endless amount of coins or tokens, creating an inflationary economic system.

A mining algorithm may be useful at the beginning of a coin’s life due to the sheer fact that the users have an incentive to mine the coin and be engaged in the project. Coins or tokens driven by mining algorithms often initially incentivize platform growth but eventually end up failing as the maximum supply gets closer and the mining rates fall. Also, inflation makes the value of each coin to become diluted with time unless demands increase continually. This happens almost often, except for very few valuable projects.

It is crucial to note that when referring to mining, we refer to a blockchain where the act of mining or producing is vital for securing the network and handling transactions (for instance, Bitcoin). However, we wanted to try something different from what is common in the market. DefiBids breaks up with the market mainstream with a constantly shrinking supply system, where the amount of available tokens keeps decreasing. With every transaction, we will keep burning up tokens in line with the Burning Smart Contract. When a transaction is sent, it burns 1% of that transaction forever, and another 1% is sent to other holders of the token that are staking on our staking portal @ https://app.defibids.com/portal. Another great way DefiBids differs is that our model is fully decentralized.