Understanding The Concept Of Total Supply In Tokens

Understand the concept of general care in the marker

One of the most important concepts in the cryptocurrency world is the overall care of certain tokens. This concept refers to the maximum number of units that can be created or created throughout the blockchain network. In other words, it is the upper limit how many tokens can exist.

What is general care?

The term “total delivery” was introduced for the first time in 2014 by Robert Hackos, a well -known expert of cryptocurrency. According to his analysis, the total offer reflects the number of units that can be created by obtaining mining or other means throughout the blockchain network. This concept is essential to understand the dynamics of the token economy and how it affects the overall value and lack of a certain marker.

How is the overall offer set?

The overall delivery of the token is usually determined by its underlying technology, such as the Blockchain Protocol (for example, the underlying Bitcoin provision protocol) or intelligent terms of the contract. In many cases, the total delivery of the marker agreement or with a certain mechanism (eg fixed block compensation system) is coded.

Types of General Care

There are two main types of general care:

  • Fixed General Offer : A fixed total offer ensures that the value and lack of the marker will remain unchanged over time, regardless of market conditions.

  • Dynamic total offer : Dynamic total delivery allows you to make adjustments in response to market changes or other factors (such as inflation) that can affect the value of the tokens.

Benefits of understanding the overall offer

Understanding the concept of general offer is essential for investors and distributors who make well decisions on investment in cryptocurrencies. Here are some benefits:

1
Value Prediction : By analyzing the overall offer, you can evaluate possible price movements and adjust your investment strategy accordingly.

  • inflation protection : Fixed or dynamic total delivery helps to reduce inflation pressure by reducing the amount of new tokens that can lead to increased deficiency and increased value.

3
scalability

: Understanding overall care can also help developers optimize their scalability projects by identifying areas where the marker becomes too expensive or ineffective.

Marker examples with dynamic total offer

Understanding the Concept of

Some examples of cryptocurrency with total dynamic delivery are:

1
Bitcoin (BTC) : The total offer of Bitcoin is limited to 21 million, which makes it limited capital.

  • Ethereum (ETH) : Ethereum’s total offer is also limited to 10 billion, although the block reward is regularly adjusted to inflation control.

Diploma

The overall delivery concept of tokens offers a valuable insight into the tokens in the dynamics of the economy and has a significant impact on investors and distributors. If you understand this key aspect of the development of cryptocurrency, you can make more detailed decisions on your investment and participate in the development of the digital asset market for the future.

I hope this article offers a comprehensive topic review!

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