Against the backdrop of the Fed's resumption of interest rate cuts, the deflationary mechanism of some projects has begun to attract attention. Some people predict that the parent currency can rush to $100, and the sub-currency even shouts out the target of $1 million - it sounds mysterious, but the logic behind it is traceable.

Let's look at the parent currency first: it continues to be burned and burned every day, and the circulation has been declining, and this trend cannot be stopped once it starts. Let's look at the sub-coin: directly withdraw the pool and burn it, and the supply is locked in the descending channel. The most important point is the third point - the price of sub-coins has indeed been steadily rising during this period, and the upward rhythm at the daily level has formed inertia.

The three dimensions are superimposed to form a typical deflationary flywheel model. Of course, the market is always full of variables, but from the perspective of tokenomics, this mechanism design does have room for imagination. Those who are still hovering in the bottom range may really have to weigh it.