Deflationary coins are digital currencies whose values are driven by scarcity based on the market theory of demand and supply. The scarcer the coin (and higher the demand), the more valuable the crypto per unit price.
That is to say, deflationary cryptocurrencies have fixed volumes or total supplies, and nothing goes beyond that. Instead, there is a regular burning of tokens to maintain their fixed volumes.
In contrast to deflationary cryptocurrencies, we have inflationary coins such as Dogecoin (DOGE) and Shiba Inu (SHIB), which are very common with no fixed total supply. There is a constant minting of tokens for inflationary cryptocurrencies.
The commonness (excess supply) of inflationary cryptos (coupled with their low demand index) makes them less valuable.
Meme coins are usually inflationary coins, except for emerging utility cryptos like Parody Coin (PARO).
In this article, we examine three cryptos with the potential to be the next Ethereum (ETH) —Parody Coin (PARO), Cosmos (ATOM), and Tezos (XTZ).
Cosmos (ATOM): An Ecosystem for Cross-Chain Smart Contracts
Cosmos, through the ATOM token, powers a network of interoperable multi-chain contracts running on the network.
Built in 2014, with the support of the Swiss-based non-profit organisation, the Interchain Foundation, Cosmos has grown to power many smart contracts through its open-source Cosmos Hub.
Cosmos, like many emerging blockchain networks, uses the Proof of Stake (PoS) to validate transactions in its exclusive product, Tendermint—a Byzantine Fault Tolerance (BFT) algorithm, which connects different computers that validate transactions on Cosmos.
The Cosmos SDK makes it easy for developers to power their dApps on the Cosmos network.
Nevertheless, all of these abovementioned facts about Cosmos point us in one direction; it looks to compete in the smart contracts distribution market and provide real use cases for its native and energy token, ATOM (just like Ethereum).
Tezos (XTZ): Following Ethereum’s Trails
Before we get into Tezos in its entirety, we must understand that Tez or XTZ isn’t entirely a deflationary token as new Tez tokens are continuously minted, especially when stakeholders submit invoices after proposals (typical of inflationary coins).
However, Tez employs an inflation funding model that keeps the price of the token constant and not affected by the higher supply.
Forging ahead, Tezos is an open-source, community-driven, and self-modifying blockchain network powering many smart contracts.
If you are familiar with NFT, you may have come across Tezos-based NFTs and NFT marketplaces.
Tezos looked to capitalise on Ethereum’s energy-based transactions that required gas fees to provide low-cost NFT transactions.
Tezos, as a community-driven protocol/network, allows its DAO members to lock in assets in a smart contract to allow them to vote on the network’s governance.
Tez or XTZ is the native crypto of the Tezos network used for settling transactions through the Proof of Stake (PoS) algorithm and voting on the governance of the network.
Tezos appears to be competing strongly with Ethereum to be one of the top smart contracts blockchains.
Its community has been resourceful in growing the network to its present milestone, and we could see a massive outburst of the Tez token in the future.
Parody Coin (PARO) — Meme Token in the Paroverse
Parody Coin (PARO) is the native crypto of the Paroverse—an ecosystem running smart contracts on the Binance Smart Chain (BSC) network. This makes $PARO a BEP20 token.
PARO is a deflationary token, meaning that it will steadily appreciate over time, provided the market remains favourable.
The protocol will constantly burn part of transaction fees from its DEX to keep it constantly deflationary.
The Paroverse will comprise a future metaverse and an NFT marketplace, where users may trade or spend parodied assets or collectables.
The parody-ness of the collectables shields users from potential intellectual thefts. Also, real collectable owners may mint their true assets in the NFT marketplace.
The deflationary crypto model gives investors insights into the future of many cryptocurrencies.
Coupled with their products and offerings, you could easily predict a brighter future for deflationary coins, provided the market remains favourable.
Among the listed protocols is newcomer, Parody Coin (PARO), currently running a live presale at a low price, which could produce over 200% returns after the platform launches in full by the third quarter of 2022.
Learn more about Parody Coin (PARO) below:
Website: https://parodycoin.io/
Presale: https://presale.parodycoin.io/register
Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein.
The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
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