younagendra2
about 1 year ago  Karma: 147
Why Supply of Coins or Token is Different for Different Projects?

Based on what the maximum supply will be decided for a particular project? Some projects have billions of coin supply and some projects have very few millions of coin supply. Why? and how it matters? Please someone explain in detail.

blockchain
coins
supply
circulation supply
bitcoin
younagendra2
about 1 year ago  Karma: 147
Why Supply of Coins or Token is Different for Different Projects?

Based on what the maximum supply will be decided for a particular project? Some projects have billions of coin supply and some projects have very few millions of coin supply. Why? and how it matters? Please someone explain in detail.

blockchain
coins
supply
circulation supply
bitcoin

ONE ANSWER
crypto.yugioh
about 1 year ago Karma: 726

A lot of factors influence the Max Supply:
- The use case of the project: IoT projects needs at least 1billion of tokens, for infrastructure projects hundred of millions will be enough.
- The HardCap of the project and the token price: if the token price and the Hard cap are low a lot of investors will be interested in the project, so for example if the HardCarp is 25 Millions $ and the token price is 0.05$, we will need 500 Million tokens.
- Speculation purposes: usually the sweet spot for investors is to have the Max supply between 100 million and 1 billion to maximun their profits.
Also we shouldn't set the max token supply too low and then we will have a Bitcoin problem of always working in fractional transaction amounts or Set it too high and the transactions will look like our currency has been affected by hyperinflation.

A lot of factors influence the Max Supply:
- The use case of the project: IoT projects needs at least 1billion of tokens, for infrastructure projects hundred of millions will be enough.
- The HardCap of the project and the token price: if the token price and the Hard cap are low a lot of investors will be interested in the project, so for example if the HardCarp is 25 Millions $ and the token price is 0.05$, we will need 500 Million tokens.
- Speculation purposes: usually the sweet spot for investors is to have the Max supply between 100 million and 1 billion to maximun their profits.
Also we shouldn't set the max token supply too low and then we will have a Bitcoin problem of always working in fractional transaction amounts or Set it too high and the transactions will look like our currency has been affected by hyperinflation.

zimmah

It's mainly psychological, because in the end it barely matters, from a technical point of view.

Mar 18 '18 at 6:46 pm
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