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Supply Distribution

Key Definitions

  • Circulating Supply: The number of tokens currently available for trading in the market—not locked or reserved.
  • Total Supply: The total number of tokens that have been created, including those locked in smart contracts or reserved, minus any that have been burned.
  • Max Supply: The absolute maximum number of tokens that can ever exist, as defined by the protocol.

The Formula: (circulating_supply - total_supply - max_supply)​

  • Closer to Zero:
    • Most tokens are already in the market.
    • Lower risk of price shocks from unlocks.
    • Collateral value is more predictable.
  • More Negative:
    • Many tokens are yet to be released.
    • Higher risk of future dilution and price drops.
    • Collateral value is less certain; risk management must account for upcoming unlocks or mints.