Deflationary token

A deflationary token is a crypto token whose supply is designed to decrease over time. This often happens through a burn mechanism, where tokens are permanently sent to an inaccessible address and removed from circulation. A deflationary token may burn part of transaction fees, protocol revenue, treasury tokens, or tokens held in a specific address. The goal of a deflationary token isn’t necessarily to lift the token’s price, but rather to reduce the number of tokens available in the market.

Binance Coin (BNB) is often cited as a deflationary token because it uses an auto-burn system to permanently remove BNB from circulation.