When developing a deflationary model for the NMP cryptocurrency, it is recommended that a number of key aspects be taken into account in order to enhance the value of the token and guarantee sustained investor interest. The primary components of the NMP deflationary model are as follows:
1. Burning mechanism
It is recommended that a burn rate be introduced, for example 1% of each transaction. This will result in a reduction in total token volume, which will create scarcity and increase the value of the remaining tokens.
2. Staking rewards
Users who retain NMP tokens in their wallets will be rewarded with additional tokens (e.g., 5% annualized), which will provide an incentive for long-term retention.
3. Dynamic transaction fees
The development of a dynamic commission structure that is responsive to market conditions. A portion of the collected commissions will be nullified.
4. Creation of “premium” services
To stimulate demand for tokens and keep them out of circulation, a certain number of NMPs will be required to access certain services. As an illustration, this could take the form of VIP opportunities within the NearMP community.