Deflationary Design Choices in Tokenized Financial SystemsIn digital asset markets, “token burns” are commonly cited as a deflationary mechanism. The prevailing intuition is straightforward: reducing supply should, all else equal, support higher prices. While this intuition is directionally correct, it obscures an important structural distinction between burn wallet deflation and true supply reduction. These two approaches have materially different implications for valuation, investor behavio...

Deflationary Design Choices in Tokenized Financial SystemsIn digital asset markets, “token burns” are commonly cited as a deflationary mechanism. The prevailing intuition is straightforward: reducing supply should, all else equal, support higher prices. While this intuition is directionally correct, it obscures an important structural distinction between burn wallet deflation and true supply reduction. These two approaches have materially different implications for valuation, investor behavio...