The number of altcoins is rapidly increasing, and during the current bull market, this has been a major reason why many investors have lost money. The corrupting influence of meme coins and the damage they cause to projects that push technological boundaries create significant problems in the ecosystem.
However, the real issue lies in the fact that most altcoin projects suffer from high inflation. So, how can we solve this problem?
Currently, project teams set a large initial supply and gradually release it into circulation without considering ongoing interest in the project. At this point, I propose a different model: DeFilation Model
Balances of inactive wallets should decrease, while active wallets should be rewarded.
For example: let's assume there are 100 million tokens in circulation and 5,000 holders. The system calculates the total number of daily transactions and determines the average transaction count per holder.
Suppose there are 10,000 transactions in the network on a given day; the average transaction count per holder would be 2.
Wallets that make fewer than 2 transactions per day will see their balance decrease by an average of 1%.
Wallets that make 2 or more transactions will be rewarded with an average 0.5% increase.
This system incorporates a fair balancing mechanism rather than relying solely on transaction counts:
Wallets slightly below the average transaction count will experience a smaller balance reduction compared to completely inactive ones.
Wallets with significantly higher transaction counts will receive a smaller balance increase. This ensures that those who artificially inflate their transaction count using bots won’t gain as much from the system.
This mechanism not only establishes a deflationary structure but also encourages investors to remain active. Additionally, it prevents unnecessary supply inflation, making the token economy healthier and more sustainable.