The Fire Token

Fire (XFR):

Bitcoin was designed from the start to have disinflationary issuance. That is, Bitcoin’s supply growth rate is positive, but it falls over time. What I propose is a cryptocurrency that is inherently deflationary right from its creation, call it Fire (XFR). Fire’s supply growth rate is negative right from the beginning, and it achieves this by reducing the number of XFR proportionally in each account balance daily. The currency will exist in the Binance Smart Chain, as it has a good combination of adoption, high scalability and low transaction fees.

A number of cryptocurrencies have already attempted this already: FUZE, SHOCK, ETHPLODE, BOMB are all ERC20 tokens whose supply is limited, and that enforce a transaction fee burning policy, that is to say, every time a user transacts with the currency, a percentage of the value transacted is burned.

Fire’s deflation policy fixes this by making the burning rate a function of time, rather than of the number of times someone has transacted XFR. Since the account balances of all addresses burn at indistinguishable rates, at no point is the coin’s equity transmitted from one kind of user to another.

Why people would invest in XFR:

Anyone looking to buy and hold XFR will be rational to do so if they expect that the price of XFR will increase at a higher rate than their nominal account balance will decrease.

XFR is the first asset of its kind and that the nominal price is under great pressure to increase. This provides the coin with a significant publicity mechanism to attract new investors and to expand the size of the network.