The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n
A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Cryptocurrency burning is the process of intentionally removing coins from the circulating supply<\/a> of a specific token<\/a>.<\/p>\n\n\n\n This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Cryptocurrency burning is the process of intentionally removing coins from the circulating supply<\/a> of a specific token<\/a>.<\/p>\n\n\n\n This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Tokens are locked through the use of smart contracts<\/a>, which once deployed are immutable and will only ever release the tokens once the contract has run its course. The tokens are stored in cold wallets, usually being shown to the public to instill trust with the team behind the project.<\/p>\n","post_title":"Token Lockup","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"token-lockup","to_ping":"","pinged":"","post_modified":"2022-08-06 16:15:50","post_modified_gmt":"2022-08-06 06:15:50","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6494","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6481,"post_author":"1","post_date":"2022-08-05 22:50:00","post_date_gmt":"2022-08-05 12:50:00","post_content":"\n Cryptocurrency burning is the process of intentionally removing coins from the circulating supply<\/a> of a specific token<\/a>.<\/p>\n\n\n\n This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Token lockups help stabalize a cryptocurrencies liquidity<\/a>, preventing a large amount of tokens hitting the circulating supply<\/a> at once. They also help prevent the people behind the project from rugpulling<\/a>, and incentivizes them to devlop the token without trying to quickly make money.<\/p>\n\n\n\n Tokens are locked through the use of smart contracts<\/a>, which once deployed are immutable and will only ever release the tokens once the contract has run its course. The tokens are stored in cold wallets, usually being shown to the public to instill trust with the team behind the project.<\/p>\n","post_title":"Token Lockup","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"token-lockup","to_ping":"","pinged":"","post_modified":"2022-08-06 16:15:50","post_modified_gmt":"2022-08-06 06:15:50","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6494","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6481,"post_author":"1","post_date":"2022-08-05 22:50:00","post_date_gmt":"2022-08-05 12:50:00","post_content":"\n Cryptocurrency burning is the process of intentionally removing coins from the circulating supply<\/a> of a specific token<\/a>.<\/p>\n\n\n\n This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A token lockup is a certain amount of time when tokens<\/a> are incapable of being transacted and\/or traded. Also known as vesting periods, these usually after an initial coin offering (ICO), and affect a certain amount of owners - typically the core developers, founders, and backers of the project.<\/p>\n\n\n\n Token lockups help stabalize a cryptocurrencies liquidity<\/a>, preventing a large amount of tokens hitting the circulating supply<\/a> at once. They also help prevent the people behind the project from rugpulling<\/a>, and incentivizes them to devlop the token without trying to quickly make money.<\/p>\n\n\n\n Tokens are locked through the use of smart contracts<\/a>, which once deployed are immutable and will only ever release the tokens once the contract has run its course. The tokens are stored in cold wallets, usually being shown to the public to instill trust with the team behind the project.<\/p>\n","post_title":"Token Lockup","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"token-lockup","to_ping":"","pinged":"","post_modified":"2022-08-06 16:15:50","post_modified_gmt":"2022-08-06 06:15:50","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6494","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6481,"post_author":"1","post_date":"2022-08-05 22:50:00","post_date_gmt":"2022-08-05 12:50:00","post_content":"\n Cryptocurrency burning is the process of intentionally removing coins from the circulating supply<\/a> of a specific token<\/a>.<\/p>\n\n\n\n This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the total supply<\/a>, which defines the tokens that have been mined and issued. Both of these metrics are included within the maximum supply<\/a> which calculates all of the tokens that will ever be available through a project.<\/p>\n","post_title":"Circulating Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"circulating-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/maximum-supply\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-09-03 01:40:47","post_modified_gmt":"2022-09-02 15:40:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6448","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6444,"post_author":"1","post_date":"2022-08-03 23:20:22","post_date_gmt":"2022-08-03 13:20:22","post_content":"\n The maximum supply is the total amount of tokens that will enter circulation in the lifetime of a cryptocurrency project. This includes all tokens which have and haven't been minted and tokens which have been lost or burned.<\/p>\n\n\n\n A majority of projects will issue a maximum supply in its protocol<\/a>, which once exhausted - will not issue any more tokens. Although some projects, including Ethereum, do not have this metric.<\/p>\n\n\n\n The max supply is different from the total supply<\/a> of a token, which calculates the cryptocurrencies that have been mined or issued. Max supply also includes the circulating supply<\/a> which is the total amount of tokens in circulation - in public hands.<\/p>\n","post_title":"Maximum Supply","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"maximum-supply","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/blockchain-protocol\/\nhttps:\/\/www.thedistributed.co\/total-supply\/","post_modified":"2022-08-03 23:46:57","post_modified_gmt":"2022-08-03 13:46:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6444","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A token lockup is a certain amount of time when tokens<\/a> are incapable of being transacted and\/or traded. Also known as vesting periods, these usually after an initial coin offering (ICO), and affect a certain amount of owners - typically the core developers, founders, and backers of the project.<\/p>\n\n\n\n Token lockups help stabalize a cryptocurrencies liquidity<\/a>, preventing a large amount of tokens hitting the circulating supply<\/a> at once. They also help prevent the people behind the project from rugpulling<\/a>, and incentivizes them to devlop the token without trying to quickly make money.<\/p>\n\n\n\n Tokens are locked through the use of smart contracts<\/a>, which once deployed are immutable and will only ever release the tokens once the contract has run its course. The tokens are stored in cold wallets, usually being shown to the public to instill trust with the team behind the project.<\/p>\n","post_title":"Token Lockup","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"token-lockup","to_ping":"","pinged":"","post_modified":"2022-08-06 16:15:50","post_modified_gmt":"2022-08-06 06:15:50","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6494","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6481,"post_author":"1","post_date":"2022-08-05 22:50:00","post_date_gmt":"2022-08-05 12:50:00","post_content":"\n Cryptocurrency burning is the process of intentionally removing coins from the circulating supply<\/a> of a specific token<\/a>.<\/p>\n\n\n\n This deflationary process is done to decrease the supply of tokens, adding more value to the ones which remain. The price doesn't increase overnight and tokens are usually not burnt in bulk.<\/p>\n\n\n\n Burning a coin or token is done by sending them to a \"burn\" or \"eater\" address((CoinDesk - What Does It Mean to Burn Crypto?<\/a>)), a wallet that cannot be accessed. This removes the coins from circulation as there is no way to access the funds inside of the wallet.<\/p>\n\n\n\n Burn addresses cannot be accessed, there are several ways to ensure the tokens inside stay there.<\/p>\n\n\n\n The burn address may be located outside of the network, meaning coins, once sent, are removed from the entire blockchain itself. The burn address may be encoded to only be able to receive tokens, not send or transfer them. <\/p>\n\n\n\n Some of these addresses don't even have private keys <\/a>attached to them or have an invalid private key. The wallets are made with keys too long to generate a valid signature<\/a> on the blockchain and these are made public to verify the wallet's keys are invalid.<\/p>\n\n\n\n Proof-of-Burn (PoB) is a consensus<\/a> algorithm where validators burn tokens to confirm transactions.((IOHK - Proof-of-Burn<\/a>)) In exchange for burning coins, validators are given rewards in the blockchain native currency.<\/p>\n","post_title":"Cryptocurrency Burning","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"cryptocurrency-burning","to_ping":"","pinged":"","post_modified":"2022-08-05 22:50:08","post_modified_gmt":"2022-08-05 12:50:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6481","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6448,"post_author":"1","post_date":"2022-08-03 23:31:08","post_date_gmt":"2022-08-03 13:31:08","post_content":"\n The circulating supply of a cryptocurrency project is an approximation of the number of tokens<\/a> in public hands, being publicly available and circulating through markets.<\/p>\n\n\n\n It is a metric that never stays the same, it often increases or decreases based on market demand. Circulating supply may increase based on tokens entering circulation through staking or mining rewards and locked tokens being unlocked. Or it may decrease based on burning, accidental transactions to wrong addresses, and losing access to wallets.<\/p>\n\n\n\n The circulating supply is contrasted by the What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Cryptocurrency Burning?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Cryptocurrency Burning?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Cryptocurrency Burning?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is Cryptocurrency Burning?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n
What Is Maximum Supply?<\/h2>\n\n\n\n
What Is A Token Lockup?<\/h2>\n\n\n\n
What Is Cryptocurrency Burning?<\/h2>\n\n\n\n
How Does Cryptocurrency Burning Work?<\/h2>\n\n\n\n
Can Someone Access A Burn Address?<\/h2>\n\n\n\n
What Is Proof-of-Burn (PoB)?<\/h2>\n\n\n\n
What Is Circulating Supply?<\/h2>\n\n\n\n