While several cryptocurrencies' tokenomics, including reflection tokens, are deflationary, another class of cryptocurrencies known as hyper-deflationary tokens goes even further.

Hyper-deflationary tokens ensure that their circulating supply is constantly decreasing by using a smart contract that burns a certain percentage of every transaction. Another method used in these tokens to reduce supply is to conduct regular buybacks.

The fees charged in hyper-deflationary tokens are usually sent to a burn wallet, which means the tokens are wiped out of existence. Holders are not rewarded with transaction fees. They benefit instead from the price increase caused by the burn.

Some cryptocurrency projects combine both mechanisms in order to create potentially appealing tokenomics models for token holders.