Players in a standard crypto project have two choices, buy or sell. Users decide to buy or sell based on whether they think the project will rise or fall. Nothing in token economics determines the player's choice, but rather external factors influence the player's judgment.
Now, there is a new type of token called a "deflationary token" (debase coin), which means that the supply of tokens decreases with each block. If you have 100 tokens and the debase rate is 1%/day, then the next day you will have 99. In order to avoid slowly losing all your tokens, you must stake your tokens. Staking issues tokens at the same rate as the debasement, so your holdings always remain the same.
Introduction to IHF
IHF is a radical crypto experiment that invests its own funds in upcoming projects and distributes funds to holders.
IHF deflationary economics has two characteristics:
1. Burn-to-Earn Airdrop
This mechanism was created to change the reality of decentralized fund failures, specifically the inability to distribute to all holders, leading to extreme dilution and fewer airdrops than expected.
For IHF, you have to do two different things to get an allocation:
Pledge IHF to earn points
Destroy IHF and convert points into airdrops
This is the highlight of the gameplay, the airdrop allocation is usually 2 times or more of your current IHF holdings. So, if you have $1,000 worth of IHF, you can destroy it to redeem an airdrop worth $2,000, or even more.
This requires users to either destroy IHF tokens, taking away another token of double value, or wait for others to destroy to increase the price.
2. Smart Debase led by the gaming community
IHF is a deflationary token, meaning your holdings decrease with each block. In order not to be targeted for devaluation, you must stake your coins. This is great if your goal is to incentivize users to stay in the game. But IHF goes a step further with a unique gamified devaluation system.
IHF does not have an effective depreciation rate for all non-staking wallets, but IHF holders can target specific wallets for depreciation. This opens up a huge space for the community to form and target specific wallets to depreciate and increase the value of their IHF tokens.