# kaal:claim:4033886-037

**Claim.** Under a deflationary token issuance model, which caps the number of tokens ever issued, prices are expected to increase because of the fundamental scarcity of token supply.

**Type.** mechanism  **Support.** argued

**Holds when.**

- deflationary token models such as Bitcoin

**Source quote.**

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

**From.** Wulf A. Kaal, Samuel Evans, Hayley Howe, *Digital Asset Valuation* (2022), IV.2.b DCF, page 34

**Cite as.** Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886

**Verify.** sha256 of source PDF `52ba05b1292b1be4bfaf1ee5cf56b14fea9c196d870603e794d7ee316df129bd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202022%20-%20Digital%20Asset%20Valuation.pdf

**Topics.** tokenomics, economics

**Keywords.** deflationary-tokens, scarcity, token-issuance, price-formation

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3249860-029
- extends: https://wulfkaal.github.io/claims/3249860-028
- restates: https://wulfkaal.github.io/claims/3067615-009

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