What are Deflationary Tokens?

Deflationary tokens are a type of cryptocurrency or digital token with a mechanism built into them that reduces their total supply over time. This can be accomplished through various methods, but it is common to automatically "burn" a small portion of each token transaction, essentially removing it from circulation. The idea behind this is that reducing the token's total supply will make the remaining tokens more valuable as demand increases. Deflationary tokens can be used in various ways, but they…