Deflationary token development aim to reduce supply over time, increasing scarcity. The most common methods are: 1) burn on transaction (e.g., 1% of each transfer is burned), 2) buyback and burn (protocol uses profits to buy tokens from the market and destroy them), and 3) capped total supply with minting control. Burning must be transparent emit events and use public burn functions. Avoid excessive burn rates as they may deter usage due to high costs. Combine deflation with staking rewards to encourage holding. Track and report burn statistics on your dashboard for community transparency. Properly calibrated deflation creates scarcity, boosts holder confidence, and sustains long‑term value.