What Is Deflationcoin?
Deflationcoin is a cryptocurrency named for its “buy back and burn” programs that will force its deflation and stabilize its value. In addition to the currency, the organization behind Deflationcoin is also creating a freelance job marketplace where workers can be paid in the currency, and a set of several plugins that allow online merchants to easily accept it. While Deflationcoin offers several distinct advantages over other cryptocurrencies, such as very fast transactions with low fees, it's too early to tell whether it will be widely adopted.
Who Is Behind Deflationcoin?
Deflationcoin's five-member team has decided to remain anonymous for at least the duration of the ICO. The group's whitepaper explains that while they hope to reveal their identities in the future, the anonymity is a measure to provide hackers with less information that they could use to infiltrate the ICO.
The group is available on Telegram to answer user questions; this is by far its most active social media page, with over 4,500 followers. The currency has gained little coverage from online publications, even those that gather information about ICOs, but the project will likely gain more publicity once its ICO begins.
Deflationcoin Waves Blockchain Cryptocurrency Technology
Deflationcoin's most significant feature is its commitment to “buy back and burn” programs; the organization releasing the coin intends to regularly buy coins off the open market and destroy them, limiting the currency's total supply and thus increasing its value. While this strategy is becoming increasingly common, it is most often reserved for currencies that are used internally with a platform. Deflationcoin's whitepaper suggests a few ideas for the actual deflation process, including a lottery game, fees for an escrow service, and its own exchange with all fees being burned; the currency's owners will be able to vote on the deflation measures beginning in 2019.
Deflationcoin runs on the open-source Waves blockchain. Waves uses a proof-of-stake verification algorithm, which is fundamentally different from Bitcoin's proof-of-work system; users with a large stake (those who own at least 1,000 Waves tokens) are eligible to be randomly selected to “mine” each new block, receiving payment from other users in exchange for verifying their transactions. This architecture allows both significantly faster transactions and lower fees than other currencies; while Bitcoin transfers can take hours and cost a few dollars depending on the exchange service, Deflationcoin transfers take seconds and cost about $0.007.
Deflationcoin's team hopes to release its first round of e-commerce plugins by the third quarter of 2018, allowing websites running on Shopify, Woocommerce, and Magento to easily accept payments in the currency. It also hopes to launch a marketplace for freelance labor – its “Microtask Marketplace” – in early 2019, which allow writers, programmers, designers, and other workers to sell their services in exchange for Deflationcoins.
Deflationcoin DFX Token ICO Details
Deflationcoin's ICO will begin at noon (GMT) on March 31st, 2018, and will continue until April 15th. A total of 1,250,000,000 will be created, with 80% of these being sold to the public, 16% dedicated for marketing and other initiatives, and 4% being kept by the development team. Deflationcoin's base price during the ICO is 100,000 for one Ethereum, but early customers will receive significant discounts. All unsold tokens will be burned. Deflationcoins must be stored in a Waves-compatible wallet.
Deflationcoin's whitepaper states that the coin will be listed on at least exchange the day after its ICO ends, then three exchanges by late 2018, and five by the second quarter of 2019. However, it doesn't identify which ones or indicate whether they've entered discussions with any exchanges.
Deflationcoin offers many significant advantages over other cryptocurrencies: its transactions are faster and cheaper, its deflationary measures should stabilize its value, and its creators are ensuring that it can actually be used to buy goods and services. However, it doesn't seem to have a large following online, and controlling the supply won't necessarily lead to demand. Deflationcoin has the potential to become one of the most functional and stable cryptocurrencies available, but its creators must engage in more marketing to win over the technology's enthusiasts.