# kaal:claim:3249860-029

**Claim.** Under a deflationary token model, prices are expected to increase because of the fundamental scarcity of token supply.

**Type.** mechanism  **Support.** asserted

**Holds when.**

- tokens with a capped maximum issuance

**Source quote.**

> With a deflationary method, prices are expected to increase due to fundamental scarcity of token supply.

**From.** Wulf A. Kaal, *Crypto Economics - The Top 100 Token Models Compared* (2018), IV.6 Valuation Trajectory, page 22

**Cite as.** Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860

**Verify.** sha256 of source PDF `72b13f11002ba26206cd53e74c324b913d1830c642bfa024da6bac0d3af3a7b0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202018%20-%20Crypto%20Economics%20-%20The%20Top%20100%20Token%20Models%20Compared.pdf

**Topics.** tokenomics, economics

**Keywords.** deflationary-model, supply-scarcity, token-price, token-design

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/4033886-037

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