Cryptocurrency Q&A
Why is LUNA considered a deflationary token?
Why is LUNA considered a deflationary token?
PhoenixRising
Wed Dec 11 2024
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5 answers
1290
LUNA is considered a deflationary token primarily due to its burning mechanism, which removes tokens from the circulating supply, decreasing the total number of tokens available. This process is designed to increase the scarcity of LUNA, potentially driving up its value. Additionally, LUNA's economic model incentives hodling and staking, further reducing the circulating supply and contributing to its deflationary characteristics.
5 answers
Leonardo
Fri Dec 13 2024
On 26 April 2022, the price of LUNA crypto stood at $96.51.
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Dario
Fri Dec 13 2024
The majority of the gains were achieved within a one-month period, spanning from February 2022 to March 2021.
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Maria
Fri Dec 13 2024
LUNA is deemed a deflationary token because of the practice of regularly burning LUNA coins.
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mia_rose_lawyer
Fri Dec 13 2024
During this time, LUNA's value doubled.
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CryptoMagician
Fri Dec 13 2024
This burning mechanism has positively influenced the value of LUNA.
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