Structural supply reset refers to a fundamental change that significantly alters the available quantity of a digital asset. This event is typically driven by protocol-level modifications, such as a halving event that reduces new coin issuance, or a large-scale burning mechanism that permanently removes coins from circulation. It creates a new, lower supply equilibrium, impacting the asset’s scarcity and long-term valuation. Such resets are often designed to enhance the asset’s economic properties and price stability.
Context
News extensively covers structural supply resets, especially events like Bitcoin halvings, as they are considered major catalysts for price appreciation. These resets often lead to a re-evaluation of the asset’s long-term price potential by market participants. Understanding these events provides critical context for interpreting supply-side economics and their influence on digital asset markets.
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