ARB Price Action Weak, Infinaeon's Deflationary Token Receives 50% Bonus Promo Boost

The ARB price has struggled over the past 12 months, even as the rest of the market has enjoyed multiple new all-time highs. In fact, the Arbitrum price is down over 65% over 12 months, while Bitcoin is up around 130%.

Arguably, one of the biggest negative pressures pushing the ARB token price lower is the ever-increasing circulating supply created by regular token unlocks. Tokenomics reported that on January 16th, an additional 92.65 million ARB tokens were unlocked, adding over 2% to the supply.

The Infinaeon team and community have repeatedly stated that their Layer-2 INF token aims to avoid the oversupply issues facing the likes of ARB. They argue that by introducing a hard cap to the supply and then using a burn mechanism to reduce supply, the potential for positive price action is increased.

INF will have a maximum supply of 420 million to start after the Token Generation Event (TGE) and will then see its supply reduced over time through the burn mechanism. This deflationary approach contrasts with the inflationary models of many other Layer-2 tokens, potentially offering a more sustainable and rewarding ecosystem for token holders.

Not only has the deflationary tokenomics added to the bullish narrative around INF, but so has the plan to launch with a market cap of just $10.25 million. This low initial market cap opens the door to potentially more rapid price increases, especially as comparable Layer-2 projects have reached valuations in the billions of dollars.

ARB Price Takes Hit As Unlock Approaches

The Arbitrum price has crashed from well over $2 to under $0.8 in the past 12 months. This all took place while the rest of the crypto market was experiencing one of its most impressive bull runs in years, with Bitcoin hitting a new all-time high well above $100,000.

The bearish long-term trend experienced by ARB has been accompanied by a series of token unlocks, which are continuously adding to the token’s supply. Data from Tokenomics reveals that over 90 million tokens were unlocked on January 16th, and there are at least 2.8 billion more on the way in the future.

This continuous increase in supply can negatively impact price dynamics. As more ARB tokens enter circulation, the available supply increases while demand may not necessarily keep pace. This can lead to an imbalance in the supply-demand equation, putting downward pressure on the token’s price and that could explain the poor ARB price performance.

INF Takes a Deflationary Approach to Layer-2 Tokenomics

The INF tokenomics model has been designed to learn from the supply-side risks associated with the unlock system built into Arbitrum. It aims to limit supply growth and, therefore, improve demand and reduce the danger of oversupply.

Infinaeon utilizes a gas fee allocation mechanism to achieve this. A portion of the gas fees collected on the network is used to buy back and burn INF tokens from the open market. This process effectively removes tokens from circulation, reducing the total supply.

In the long run, this burn mechanism can significantly alter supply dynamics. As network activity increases and more transactions occur, more tokens are burned, creating a deflationary effect. This contrasts with inflationary models, where the supply continuously expands, potentially leading to dilution and downward pressure on the token’s price.

This approach represents a significant contrast to the ARB model, which relies on a large total supply and ongoing token unlocks. By implementing a deflationary mechanism, Infinaeon aims to create a more sustainable ecosystem.

INF 50% Presale Bonus Code Live For a Limited Time Only

The INF presale 50% bonus code is adding to the bullish narrative around the project, created partly by the deflationary tokenomics model. The presale has already raised around $1 million, meaning it has reached 50% of its target.

Following the mainnet launch, the bonus offer went live, providing an additional incentive for investors to participate in the presale. This limited-time offer allows users to acquire INF tokens at a discounted price with a substantial bonus.

To take advantage of the bonus offer, simply enter the code “INF42” before completing your purchase on the Infinaeon presale page. This will automatically add the bonus tokens to the order.