Clear DefinitionsToken Supply
1 min read
Pronunciation
[toh-kuhn suh-plahy]
Analogy
Think of 'Token Supply' as the overall concept of how many 'shares' exist for a company. There might be a maximum number of shares the company is ever allowed to issue ('Max Supply'), the number of shares created so far ('Total Supply'), and the number of shares actually available for public trading ('Circulating Supply'). 'Token Supply' covers all these aspects.
Definition
A general term referring to the number of coins or tokens associated with a specific cryptocurrency or blockchain project. It encompasses various metrics like circulating supply, total supply, and maximum supply, which describe the availability and potential future issuance of the token.
Key Points Intro
Token supply metrics are crucial for understanding a cryptocurrency's economics and potential value.
Key Points
Refers to the quantity of a specific token.
Different metrics (Circulating, Total, Max) describe different aspects of supply.
Influences token scarcity, inflation/deflation rates, and market capitalization.
Defined by the project's protocol or tokenomics.
Example
Understanding Bitcoin's token supply involves knowing its circulating supply (coins mined and available), its total supply (coins mined so far), and its maximum supply (capped at 21 million).
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