In the context of cryptocurrencies, a deflationary model can involve mechanisms that intentionally reduce the total supply of tokens over time. This can be achieved through techniques such as token burning, where tokens are permanently removed from circulation, or through limited initial supply and no new issuance. The underlying premise is that as the supply decreases, demand remains constant or increases, leading to price appreciation. Deflationary models are often contrasted with inflationary models, where the supply of a currency continuously increases, diluting its value.