What is Value Variance Inflationary Token?

The term Inflation is associated with macroeconomics in determining the purchasing power of a particular nation's currency. However, there is a continuous debate around the meaning of Inflationary and Deflationary Tokens in the Crypto World. This article will make you well acquainted with the term and How NavC is a Value Variance Inflationary Token.

As we move forward, getting a broader understanding of the term is essential.

What is Inflation?

Inflation means a rise in the price of goods and services. With the rise in demand, the price of goods and services also increases. There can be multiple factors directly or indirectly affecting the inflation rate of an economy. Such as rising wages, increased production costs and excessive money supply in the market.

What is an Inflationary Cryptocurrency?

When the number of crypto tokens in circulation rises over time, It means there is high demand for that crypto token. The price of the token will increase due to high demand and is called an inflationary token. For instance, Ethereum, Solana, and Dogecoin come under the definition as there is no hard cap on the supply.

However, NavC Token demand is correlated with the total trades happen on NavExM Exchange. NavC is price inflationary in nature, meaning its value appreciates each time a trade is executed on the exchange.

You may wonder, how is it possible?

Let's understand

How NavC is a value variance inflationary token?

The unique Trading Engine of NavExM is designed in such a way that every trade on the exchange is routed through the NavC itself. Thus, each trade on the exchange creates the demand for its native currency.

The Token distribution of the project limits the supply of NavC Token, and only 0.02% of the total tokens are available in the open market. The tokenomics of NavC fixed supply and consistent demand on NavExM ensure continuous price increment with every trade on the exchange.

This huge token velocity due to the demand generated for trade settlements will raise its price in every subsequent transaction. Thus, it is called a Value Variance Inflationary Token.

NavExM community members get rewarded for the demand of the token in the form of cashback on every trade.

At NavExM, you can buy and sell cryptocurrencies with zero transaction fees.

Each time you buy or sell a cryptocurrency on NavExM, you can get a cashback of up to 0.10% of the transaction value. It is designed with an aim to encourage crypto trading among all crypto investors and provide cashback to the community for their participation in the market rather than charging transaction fees.

The rewarding landscape of NavExM encourages traders to trade more and earn more, creating a continuous demand for its native utility token.

Let's illustrate it with an example:

If a trader wants to swap ETH for BTC, then the demand for certain numbers of NavC Token will be created to settle the trade.

Let's say,

The demand of NavC for a particular trade is (Z) % of the NavC liquidity pool

The price of NavC will increase by 2(Z) as per AMM once the trade is successfully executed.

{NavC+(2Z * NavC)}

NavExM's unique trading engine ensures that the value of NavC gets appreciated with every trade in the NavExM exchange.

Conclusion

NavC is the backbone of NavExM, the Next Generation Exchange. As NavExM grows, the price of its native utility token is also expected to grow exponentially because of its value variance inflationary nature.

By becoming an early member of the NavExM trader community, one can yield phenomenal returns.

Further, there are dazzling staking benefits reserved for the early NavC investors.

Want to know more about it?

Visit https://navctoken.com/