{"id":93976,"date":"2023-08-26T12:00:06","date_gmt":"2023-08-26T12:00:06","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=93976"},"modified":"2024-01-16T10:28:39","modified_gmt":"2024-01-16T10:28:39","slug":"maximum-supply","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/maximum-supply","title":{"rendered":"Maximum Supply"},"content":{"rendered":"

What Is Maximum Supply?<\/span><\/h2>\n

The maximum supply of a cryptocurrency<\/a> coin or token<\/a> controls its rate of supply inflation, which can influence its value over time. It differs from total circulating supply and total supply, so it\u2019s important for users and investors to understand the difference.<\/p>\n

Maximum supply is defined as the total number of cryptocurrency coins or tokens that will ever be mined<\/a>, or created. It is the maximum number of units that can ever be in circulation<\/a>, and once the maximum supply is reached, no new units will be mined or issued.<\/p>\n

This can be coded into the protocol<\/a> from the genesis (first) block on the blockchain<\/a>, in which case it is only changed if the developers decide to do so in the future.<\/p>\n

The concept is one of the key features of cryptocurrencies that sets them apart from traditional fiat currencies, as a country\u2019s central bank can print more currency at any time<\/a>.<\/p>\n

Setting a consistent issuance rate and limiting the supply of a coin or token creates scarcity that can control inflation, supporting the value of a cryptocurrency and influencing its potential uses<\/p>\n

Maximum Supply vs. Total and Circulating Supply<\/h3>\n

Maximum supply differs from total supply<\/a>, which refers to all coins or tokens that have already been issued, minus any that have been burned or destroyed to remove them from circulation.<\/p>\n

Total supply and maximum supply both include coins and tokens that are locked and held in reserve, whereas circulating supply refers only to those that are in circulation on the public market.<\/p>\n

Types of Maximum Supply<\/span><\/h2>\n