Definition ∞ Token issuance rules are the predefined parameters and protocols that govern the creation, distribution, and supply management of new digital tokens on a blockchain. These rules specify aspects such as the total supply limit, the vesting schedule for team or investor tokens, the distribution mechanisms like initial coin offerings or airdrops, and any deflationary or inflationary policies. They are critical for defining the economic model and long-term value proposition of a digital asset. These rules ensure transparency and predictability.
Context ∞ Crypto news often reports on token issuance rules when new projects launch or when existing protocols propose changes to their tokenomics. Discussions frequently center on how these rules impact token distribution fairness, potential price volatility, and the overall health of the ecosystem. Understanding token issuance rules is essential for evaluating a digital asset’s fundamental value and its potential for future growth.
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