Key Takeaways
How is Bonk addressing its high inflation rate?
Bonk uses token burns and buybacks to reduce supply and increase scarcity.
Do these deflationary measures have a lasting impact on Bonk’s price?
Historically, they’ve triggered short-term price spikes but haven’t sustained long-term upward momentum.
Since launching, Bonk [BONK] has become a prominent memecoin, fueled by a highly engaged community.
What sets BONK apart from most other memecoins is its deep integration with the Solana ecosystem, along with active use in DeFi applications and NFT projects.
However, like other memecoins, Bonk is extremely inflationary, with 81.97 trillion tokens in circulation, according to CoinMarketCap.
Source: Tokenomist
At the same time, 20% of the memecoin’s supply is subject to a three-year vesting period, expiring in 2026. On top of that, over 18.25 billion tokens enter circulation from unlocks every day, according to Tokenomist.
To curb inflation, the Bonk team has deployed central deflationary mechanisms.
Token burns, Bonk’s deflationary tool
Notably, since its inception, Bonk has deployed token burning as its primary mechanism to reduce supply and, in turn, increase scarcity. So far, 65% of the total Bonk supply has already been burned.
Usually, reduced supply and rising scarcity have positively impacted asset value, and the Bonk team has leveraged supply-and-demand economics significantly.
Source: BurnMas
For example, in December, BurnMas announced the burning of 1.69 trillion tokens during the Christmas holiday.
In July 2025, the team announced plans to burn 1 trillion tokens if the total number of holders reached 1 million.
According to Solscan, Bonk currently has 985,389 holders, and it hasn’t yet reached its target. This implies that another massive token burn is upcoming.
Source: Solscan
The effectiveness of these events
Historically, token burns have positively impacted Bonk’s price movement. Take the BurnMas event, for example, the memecoin surged 27% after the burn was announced.
The same pattern emerged in July, after the team announced the upcoming 1-trillion-burn, with the memecoin rising 10%.
While these impacts have historically been short-lived, they have at times reduced supply and attracted fresh capital.
Other mechanisms deployed
Besides token burns, BONK has deployed other and more consistent deflationary measures.
For starters, Token Buybacks has emerged as another tool to reduce the memecoin’s supply. As such, 50% of the fees from the BonkFun launch pad are used to buy back Bonk tokens.
According to Artemis data, BonkBot and BonkFun have cumulatively generated $15k in daily fees throughout October.
Source: Artemis
Most of the fees generated here are used in buybacks. In fact, after taking a step from token buybacks, the team returned and spent $72k in buybacks.
Typically, consistent token buybacks reflect the team’s long-term commitment to the project’s prospects. As such, these continuous measures reduce supply while rising scarcity, helping add value to the token.
What’s next for Bonk?
According to AMBCrypto, Bonk is highly inflationary, with billions of tokens entering circulation daily due to market sell-offs and token unlocks.
To counter this, the BONK team has introduced deflationary tools like token burns and buybacks to reduce supply and increase scarcity. These measures have occasionally led to short-term price gains.
However, once the initial hype fades, Bonk often faces renewed selling pressure. Since peaking at $0.00004 in mid-July, it has been trading in a descending channel, signaling continued downward momentum.
This suggests Bonk’s deflationary effects are typically short-lived. Still, if the token reaches 1 million holders and triggers another major burn, a rebound toward $0.00004 could follow.