Hyperdeflationary tokens are designed to be highly deflationary. This is achieved by the token contract burning a percentage of the tokens with every transfer made.

In the example below, Bomb Token is used. 

With every transaction sent, 1% of the transfer amount is destroyed and removed from the total circulating supply. 1,000,000 BOMB tokens are minted, and no more BOMB will ever be minted.

On Switcheo, BOMB tokens are only burnt whenever a transfer happens (i.e. Deposit/Withdrawal). This is different compared to on-chain exchanges such as DDEX, where tokens are burnt for every transaction executed as trades happens on-chain.

For example, on Switcheo, if Alice purchases 10 BOMB tokens at 1 ETH per token, this will cost her a total amount of 10 ETH. Then, 3 days later, Alice sells the BOMB tokens at 2 ETH each, netting her a total profit of 10 ETH.

However, on DDEX, if Alice purchases 10 BOMB tokens at 1 ETH per token, this will cost her a total amount of 10 ETH. Because she made a transaction, 1 BOMB token was burnt as a result. Then, 3 days later, Alice sells the BOMB tokens at 2 ETH each, netting her a total profit of 9 ETH.

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