Notcoin Community once published an interesting post about the deflationary model of notcoin. As stated in the publication, the formula for determining the market capitalization of a coin is very simple: the price of one unit of currency multiplied by the total emission. Thus, with the same capitalization, the price of certain coins can still fall, as shown in the picture on the left. The reason is the total number of coins. Coins can be blocked, thereby disappearing from the market, and then unfrozen again and collapse the price, getting back to the market. In another case, they can simply be minted, also increasing the number of coins on the market and reducing the price. Increasing the amount of currency with its further depreciation is inflation.
Notcoin, in turn, is completely protected from this. The rights to the coin are transferred to a zero address - it simply has no owner. It is impossible to mint anything. 90% of the emission is in people's hands. The remaining 10% is for project development. There is nothing to block. Notcoins can only be burned - reducing their quantity, thereby increasing the price. Deflationary model.
I publish all the most interesting things about $NOT in my telegram channel - @top1verunvnot.
