There are a lot of terms in the world of cryptocurrencies that can be confusing, especially for beginners. One of the key concepts is maximum supply.
Maximum supply refers to the total number of coins that can ever be created for a specific cryptocurrency, as defined in its blockchain code. Once this limit is reached, it is no longer possible to create or mine new coins. This characteristic is important for cryptocurrencies, as it determines their scarcity and can affect their value over time.
Cryptocurrencies can have different types of maximum supply:
- Limited supply: The total number of coins is predetermined and fixed. For example, Bitcoin (BTC) has a maximum supply of 21 million coins.
- Unlimited Supply: There is no maximum limit, and new coins or tokens are continuously created. Example: Ethereum (ETH).
- Deflationary Supply: The total supply decreases over time through a burning mechanism. Burning tokens reduces the supply, protecting the cryptocurrency from inflation and price volatility. Example: Spintria (SP).
- Pre-mined supply: All coins are created at once, and no new coins are mined. Example: Ripple (XRP).
Why is Maximum Supply Important?
Maximum supply plays a key role in ensuring scarcity, controlling inflation, and maintaining the long-term value of cryptocurrencies. Limiting the total supply creates scarcity, which drives up the asset’s price. In the meantime, supply control prevents inflation by ensuring no new units can be created after reaching the limit.
What Type of Supply Does Spintria Use?
Spintria utilizes a deflationary model. The initial supply is 888,888,888 $SP tokens. Each month, project partners burn 25% of the $SP tokens earned through adult content creation. The burning process is carried out transparently via a minter, which gradually reduces the total number of tokens in circulation. After all burns, the total supply will be halved to 444,444,444 $SP .
Soon, developers will implement smart contracts to automate token burning, which will increase the value of the remaining ones. Regular agreements with partners to burn part of the tokens further support value growth and protect against inflation, making the assets more attractive to investors.
Understanding the concept of cryptocurrency maximum supply is crucial for making informed, long-term investment decisions.
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