What is a Deflationary Token?
As the name implies, deflationary cryptocurrencies go through deflation over the course of time. They decrease in total supply every time a token transfer happens. A percentage of the transferred amount will be burned (called “deflation fee”) with every transfer. The primary purposes of this fee are:
1. Reward Existing Holders: A portion of the fee is distributed to current holders, enhancing their benefits.
2. Increase Liquidity: Funds are injected into the project’s liquidity pool to promote market stability.
3. Support Development: The fees are used for project development and ecosystem building, ensuring long-term growth.
Please note:
1. The deflation fee is a fixed mechanism determined by the specific token's blockchain and is not charged by CoinEx. CoinEx only calculates and displays the final amount based on the actual received or withdrawn amount.
2. Details regarding the deflation rate can be found on the deposit or withdrawal page of the deflationary token. Please read the instructions carefully before making deposits or withdrawals.
How is the credited amount calculated for deflationary coins deposited to CoinEx?
1. Deflationary coins incur a certain percentage of fee upon being credited on-chain; CoinEx will charge the same percentage based on the actual amount received. Different coins have different deflation rates; details can be found on the deposit page.
2. Calculation: Actual credited amount = Deposit amount × (1 - Deflation rate)²
3. Take CWIF as an example:
Deposit amount: 1,000 CWIF
Deflation rate: 4%
Actual credited amount = 1,000 × (1 - 0.04) × (1 - 0.04) = 921.6 CWIF
How is the amount calculated when withdrawing deflationary coins from CoinEx to an external address?
1. When users withdraw deflationary coins, in addition to the withdrawal fee charged by the sending platform, a certain percentage of fees will be deducted after the withdrawal transaction is recorded on the blockchain. The exact amount credited will depend on the specifics of the receiving platform. Deflation rates vary by token, which can be found on the withdrawal page.
2. Calculation:
Actual withdrawal amount = (Withdrawal amount - Withdrawal fee) × (1 - Deflation rate)
3. Take CWIF as an example:
Withdrawal fee: 370,000 CWIF
Withdrawal amount: 1,000,000 CWIF
Deflation rate: 4%
Actual withdrawal amount = (1,000,000 - 370,000) × (1 - 4%) = 604,800 CWIF
Supported Deflationary Tokens on CoinEx
1. KISHU
2. CULT
3. PIT
4. LUNC
5. USTC
6. CWIF
7. 0X0
8. LINGO
9. FLUXB