Clear DefinitionsMax Supply
1 min read
Pronunciation
[maks suh-plahy]
Analogy
Imagine a limited edition collectible card set. The 'Max Supply' is the total number of cards the manufacturer has committed to *ever* printing for that specific set (e.g., 'only 10,000 will ever exist'). No more cards beyond this limit can be created, ensuring scarcity.
Definition
The absolute maximum number of coins or tokens that will ever be created for a particular cryptocurrency, as defined by its protocol. Not all cryptocurrencies have a maximum supply.
Key Points Intro
Max supply represents the theoretical upper limit on the number of tokens that can ever exist.
Key Points
The hard cap on the total number of tokens that can ever be generated.
Encoded into the protocol rules and cannot be exceeded unless the protocol itself is changed (often requiring a hard fork).
Creates provable scarcity for the token.
Not all tokens have a max supply (some are inflationary indefinitely).
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