# Deflationary Token Model

**The Problem:**\
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In many token economies, a continuously increasing supply can dilute the value of each token over time, compromising the potential for long-term appreciation. Without a deflationary mechanism, the token's value might suffer despite the growth of the platform.

**The Solution:**\
\
Agent Mimi AI incorporates a deflationary model where a portion of the MIMI tokens used for subscriptions is automatically burned. This systematic reduction in supply creates scarcity, which can increase the token's long-term value.\
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\&#xNAN;*Example:* If 10% of the tokens are burned with every subscription transaction, the total circulating supply will decrease over time, potentially benefiting long-term holders by increasing the value of the remaining tokens.


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