Ethereum may not necessarily be classified as a better asset after it became deflationary. Ethereum has a rich ecosystem that drives transactions on the chain, and as more Ether gets burned in the process, it causes deflation. An unused Ethereum blockchain wouldn’t be able to achieve this economic feat.
Centralized regulatory organizations typically govern the inflation of asset prices in traditional capital markets. Is that the same in Web3? Who ensures fair play? Deflationary mechanisms are interwoven into the tokenomics while creating the ecosystem. Where tokens have an unlimited supply, as the token ecosystem matures, there would be more opportunities for burn. Therefore, the organization managing the token must proactively identify these opportunities and embed them into the tokenomics to reduce the supply.
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