#jager How Does Jager's Token Burn Work?

Jager implements a deflationary mechanism that includes regular token burns, often linked to events such as increased trading volume or community milestones. For example, recent posts on X indicate that "with every purchase of $JAGER, tokens are burned, reducing the total supply and increasing scarcity". This process is automatic and integrated into the project's tokenomics, ensuring transparency and consistency. Furthermore, Jager follows a model inspired by Binance's (BNB) Auto-Burn system, which aims to reduce the total supply to increase long-term value.

Benefits of Token Burning for Investors

Potential Increase in Token Value

The main advantage of token burning is the reduction of circulating supply, which can increase the value of the remaining tokens, especially if demand remains stable or grows. In the case of Jager, the reduction of over 764 trillion tokens already shows a significant impact on supply. This programmed scarcity can lead to a price appreciation, benefiting investors who hold $JAGER in their wallets. For example, basic economic logic suggests that with fewer tokens available, each unit can become more valuable, especially in a project with strong community support and increasing adoption.

Incentive for Long-Term Holders

Jager rewards investors who hold their tokens (holders) through mechanisms such as automatic airdrops and liquidity pool (LP) staking rewards. The token burn complements these rewards, as it increases scarcity and, consequently, the potential value of the retained tokens. This creates an incentive for investors to hold their $JAGER, rather than selling them quickly, promoting price stability and community loyalty.