Fixed Supply

Definition ∞ Fixed supply describes a characteristic of certain digital assets where the total number of tokens that will ever exist is predetermined and cannot be increased. This scarcity mechanism is programmed into the protocol and is a fundamental aspect of assets like Bitcoin. It aims to prevent inflation and preserve value over time.
Context ∞ The concept of fixed supply is a central tenet for many prominent cryptocurrencies, influencing their economic models and perceived value propositions. Ongoing debates often contrast assets with fixed supplies against those with variable or inflationary issuance schedules. This characteristic remains a key factor for investors assessing long-term asset appreciation potential.