Bitcoin has set the industry standard for a deflationary token model.
In this model, there is a set number of tokens to be created, with that limit never being adjusted upward. This creates a deflationary currency where even as demand increases, supply does not.
Pros: A limited supply of tokens generates natural demand as the supply dwindles. It also completely eliminates the worry of inflation which plague fiat currencies.
Cons: Some wonder if the incentive structure in a deflationary model will ultimately lead to its downfall. Because there is a limit to the number of tokens produced, users are incentivized to hoard tokens, not spend them. Without enough spending, most tokens will fall out of circulation and the token itself will become less valuable.