Cryptocurrency supply concept
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today, the topic I want to discuss is cryptocurrency supply concept.
MAX SUPPLY :
First let's talk about Max Supply. Suppose the maximum supply of a coin (we will call the coin ABCD coin for the convenience of understanding) is up to 10 thousand coins. The concept of max supply is, suppose a company has created ABCD coins and has a supply of 10,000. So now if the company wants to increase their supply but they can't. It means if your max supply is given for one coin then if the company wants to increase the amount of their coins more but this is not possible if the max supply of coins is given. That means the company cannot raise even one hundred tokens above ten thousand. But can reduce.
TOTAL SUPPLY :
The way total supply actually works, suppose there is 10000 supply of ABCD coins, now the company wants them to release 10000 coins in the market, they will keep some coins in their hands, what will the company do, here in the 10000 supply, the company will release 9000 coins in the market and one They will keep a thousand coins in their hands. So here is the total supply, those 9000 coins released in the market are total supply coins. That means total supply.
CIRCULATING SUPPLY :
Circulating supply and total supply are similar but slightly different. There are as many traditable coins in the market. It means that all tradable coins that can be traded or you have are considered as circulating supply together. Think Max supply is 10 thousand, total supply is 9000 and circulating supply is 7000. Basically, as many coins as there are in the market to trade, it is considered as circulating supply.
UNLIMITED SUPPLY :
Unlimited supply is a little dangerous. As the supply is unlimited, suppose the supply of ABCD coin is 10000. Now the company can increase the supply of coins if it wants (if the max supply of some is not given). If they want to raise 10 thousand to 15 thousand, 15000 to 20 thousand coins then they can do it easily.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
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Thank you.
There are many way to supply coin. You share in detail. Love it.