Supply
Supply: Total Token Quantity Available
Supply refers to the total amount of cryptocurrency tokens available, including those in circulation, locked up, or held by various parties. It's a fundamental economic factor affecting token value.
Supply encompasses all cryptocurrency tokens that exist or will exist, including circulating supply available for trading and locked supply held by teams, investors, or smart contracts. Supply dynamics significantly influence token economics and pricing.
How Cryptocurrency Supply Works
Token creation through mining, minting, or other issuance mechanisms that add new tokens to the total supply.
Supply reduction via burning, staking lockups, or other mechanisms that remove tokens from circulation temporarily or permanently.
Distribution patterns affect how supply is allocated among different stakeholder groups and released over time.
[IMAGE: Supply categories showing circulating, locked, and burned tokens with flow between categories]
Real-World Examples
- Fixed supply tokens like Bitcoin with predetermined maximum amounts that can ever exist
- Inflationary tokens with ongoing issuance through staking rewards or mining
- Deflationary mechanisms like Ethereum's fee burning that reduces total supply over time
Why Beginners Should Care
Price impact from supply changes that can affect token value through basic supply and demand economics.
Investment timing considerations around supply unlock events that may create selling pressure.
Economic sustainability assessment of whether tokenomics create sustainable long-term value or unsustainable inflation.
Related Terms: Circulating Supply, Total Supply, Token Economics, Inflation