Token Supply

Definition ∞ Token Supply refers to the total quantity of a specific cryptocurrency or digital asset in existence at any given time. This metric includes the circulating supply, representing tokens readily available in the market, and the maximum supply, which denotes the absolute upper limit of tokens that will ever exist. The management of token supply, often determined by a protocol’s issuance schedule or burning mechanisms, directly impacts its scarcity and economic valuation. Understanding these figures is crucial for assessing a digital asset’s monetary policy and potential price trajectory.
Context ∞ The state of Token Supply is a fundamental data point frequently reported in crypto news, influencing market analysis and investment decisions. Key discussions often concern the deflationary or inflationary aspects of a token’s issuance model and its implications for long-term value retention. A critical future development involves the dynamic adjustments to tokenomics by various protocols to maintain economic stability and incentivize network participation. This quantifiable characteristic is a primary determinant of a digital asset’s scarcity model.