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Cryptocurrency News Articles

Understanding the Differences Between "Maximum Supply", "Total Supply", and "Circulating Supply"

Dec 28, 2024 at 09:03 am

Let's go, to finally put an end to doubts regarding token generation and end speculation around it. The first extremely important point is to understand the

Understanding the Differences Between "Maximum Supply", "Total Supply", and "Circulating Supply"

Let's go, to finally put an end to doubts regarding token generation and end speculation around it.

The first extremely important point is to understand the differences between "Maximum Supply", "Total Supply", and "Circulating Supply".

Maximum Supply: It is the maximum limit of units that can be issued of a cryptocurrency throughout its existence. It is a fixed value, defined in the cryptocurrency protocol, and will NEVER be exceeded.

Total Supply: This is the total number of units of a cryptocurrency that have been issued or mined to date. It includes all existing coins, including coins in circulation and those that are locked, burned or reserved.

Circulating Supply: This is the number of cryptocurrency units that are currently available and in circulation on the market. In short, only those available for purchase/sale on the market. Almost the majority of the time that tokens are generated, they are blocked and are not part of the "Circulating Supply" count.

1 - There is a very clear schedule from the currency developers, where the manner and frequency with which these tokens will be generated until the end of the supply period was defined, where the currency will complete its generation cycle, thus reaching its "Maximum Supply" of 4BI.

2 - In this first stage, the generation of approximately 14.6M tokens was expected. At this point, there was a lack of clarity in the information, as they started generating 14M tokens, thus increasing the "Total Supply", since these tokens were blocked and not available on the market. Only after reaching the generation target of 14M did the release of these tokens to the market begin, thus starting to increase the "Circulating Supply", but here comes the trick: The "Total Supply" also continued to rise, so the generation of tokens will be double what was previously informed. This injection of tokens will only be completed when the "Total Supply" reaches 513.6M. That said, from what I have seen, around 100K has been being dumped per hour, so I believe it will still take at least until the beginning of January to complete this first injection.

3 - Token generation goes from NOV 2024 to NOV 2028. The Graph classifies into 4-month periods to make it easier to view, but new tokens will be generated every month, the graph shows this clearly, just click between the period of months to check what will be generated in each month, as an example in this image in January we will have 7.5% generation in Launchpool, 5.95% of AirDrops and a few others, I will only mention the most relevant ones so as not to extend the topic too much.

Note: This is not an investment suggestion, the idea here is to bring clarity to the information for newbies and support the community.

Summary: I hope this post can facilitate and help everyone's understanding of this subject, good investments everyone!

Merry Christmas and a Happy New Year!

News source:www.binance.com

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

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Other articles published on Dec 29, 2024