Inflationary and Deflationary Tokens: What are they?

[Min George]

I am still a novice in this crypto thing and I am yet to understand some things. I have heard about deflationary tokens and inflationary tokens. From the little I gathered, it is like deflationary tokens tend to reduce it's supply with every transaction carried out.

I don't seem to understand the whole thing. Can someone explain what deflationary and inflationary tokens are and their significance to the average crypto user?

 

[Suba]

In our crypto world, inflationary tokens/coins often occur which have an unlimited max supply, so that the supply of coins/tokens increases, causing token prices to fall. Meanwhile, deflationary tokens are the developer's action to reduce tokens by "burning" and increasing transaction fees.

 

[Laurentta]

From my understanding, inflationary tokens are cryptocurrencies that increases the amount of tokens in circulation while deflationary tokens decreases the amount of tokens in circulation.