Total supply is the total number of coins or tokens of a cryptocurrency that currently exist, minus any that have been verifiably destroyed or "burned." It represents the complete circulating and non-circulating inventory of the asset at a given point in time. This figure is distinct from max supply, which is the theoretical upper limit, and circulating supply, which counts only tokens actively available on the market. For assets with no burning mechanism, total supply may equal the max supply.
LABS
Glossary
Total Supply
Total Supply is the definitive count of all tokens that will ever be minted or created for a specific cryptocurrency or digital asset, as defined by its underlying protocol or smart contract.
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definition
BLOCKCHAIN METRICS
What is Total Supply?
A fundamental metric representing the complete inventory of a cryptocurrency or token.
The total supply is a critical data point for calculating key financial metrics, most notably market capitalization. Market cap is derived by multiplying the current price of a single token by the total supply, providing a snapshot of the network's total valuation. Analysts also use total supply to assess inflation rates and tokenomics, as it reveals how many new units are being minted over time through block rewards, staking yields, or other issuance mechanisms.
For developers and auditors, the total supply is a verifiable on-chain state. It can be queried directly from a smart contract for ERC-20 tokens using a function like totalSupply(), or calculated from a blockchain's native issuance schedule. This transparency allows for independent verification, a core tenet of decentralized systems. Understanding the difference between total, circulating, and max supply is essential for accurate project evaluation and avoiding common misconceptions about a token's scarcity and value.
how-it-works
BLOCKCHAIN ECONOMICS
How Total Supply Works
Total supply is a fundamental metric in tokenomics, representing the complete count of a cryptocurrency's tokens that will ever exist, including those in circulation and those yet to be released.
Total supply is the definitive count of all units of a specific cryptocurrency that have been created, minus any that have been verifiably destroyed or burned. This figure includes tokens currently in circulating supply—those actively traded—as well as those locked in vesting schedules, reserved for the team, or held in a treasury. It is a critical, immutable parameter defined in a token's smart contract or protocol rules, establishing the absolute upper limit of its monetary base. For example, Bitcoin's total supply is algorithmically capped at 21 million BTC, a hard limit enforced by its consensus rules.
The mechanism for determining total supply varies by protocol. For mintable tokens, the supply may increase over time according to a predefined emission schedule, like the block rewards in proof-of-work mining. Conversely, deflationary tokens may have a decreasing total supply if a burn mechanism permanently removes tokens from existence, as seen with Ethereum's EIP-1559 fee burn. Understanding whether a token's total supply is fixed, inflationary, or deflationary is essential for analyzing its long-term economic model and potential for scarcity.
Total supply must be distinguished from circulating supply and max supply. Circulating supply refers only to tokens publicly available and tradable, which is often a more practical metric for calculating market capitalization (price × circulating supply). Max supply is typically synonymous with total supply but can sometimes refer to a theoretical maximum if the token is not yet fully minted. Analysts scrutinize the gap between circulating and total supply to assess potential future sell pressure from unlocked tokens, making total supply a key variable in investment and governance decisions.
key-features
BLOCKCHAIN METRICS
Key Features of Total Supply
Total Supply is a fundamental metric representing the complete count of a cryptocurrency's tokens or coins that exist or will ever exist. Understanding its components and mechanics is crucial for evaluating scarcity, inflation, and governance.
01
Maximum Supply vs. Circulating Supply
Total Supply is often distinguished from two related metrics. Maximum Supply is the absolute, hard-coded upper limit of tokens that can ever be created (e.g., Bitcoin's 21 million). Circulating Supply refers to the tokens currently publicly available and tradable, excluding those locked, reserved, or burned. Total Supply typically sits between these two figures.
02
Minting and Emission Schedules
The Total Supply increases according to a protocol's emission schedule or tokenomics. This defines how new tokens are minted and distributed, such as through block rewards for miners/validators or scheduled releases from a treasury. A predictable schedule allows for analysis of future inflation rate and supply dilution.
03
The Role of Token Burns
Token burning is a deflationary mechanism that permanently removes tokens from circulation, reducing the Total Supply. This is achieved by sending tokens to a verifiable, unspendable address (e.g., Ethereum's 0x00...dead). Burns can be scheduled (e.g., EIP-1559's base fee burn) or initiated through transactions (e.g., Binance Coin quarterly burns).
04
Supply Caps and Scarcity
A hard cap on Maximum Supply (like Bitcoin's) creates algorithmic scarcity, a key feature of sound money principles. Assets without a hard cap (e.g., Ethereum, Dogecoin) have an inflationary tail emission or managed issuance policy. The relationship between Total Supply and scarcity is a primary driver of long-term value models.
05
Vesting and Locked Allocations
A portion of the Total Supply is often allocated to founders, teams, investors, or foundations with vesting schedules or lock-up periods. These tokens are part of the Total Supply but not the Circulating Supply until they are released ("unlocked"). Tracking these unlocks is critical for assessing market sell pressure.
06
Utility in Governance and Staking
For Proof-of-Stake (PoS) and DAO governance tokens, the Total Supply defines the universe of potential voting power or staking collateral. Metrics like staking ratio (staked supply / circulating supply) and voter turnout are derived from these supply figures. Tokenomics often allocate a supply portion to staking rewards.
KEY METRICS
Total Supply vs. Circulating Supply vs. Max Supply
A comparison of the three primary supply metrics used to analyze a cryptocurrency's tokenomics and market valuation.
| Metric | Total Supply | Circulating Supply | Max Supply |
|---|---|---|---|
Definition | The total number of coins or tokens that currently exist, excluding any that have been verifiably burned. | The number of coins or tokens that are publicly circulating and tradable on the market. | The hard-coded, absolute maximum number of coins or tokens that can ever be created. |
Includes Locked/Vested Tokens | |||
Includes Pre-mined/Team/Foundation Holdings | |||
Subject to Change | |||
Primary Use Case | Calculating Fully Diluted Valuation (FDV) | Calculating Market Capitalization | Assessing long-term inflation schedule |
Example (Bitcoin) | ~19.7M BTC | ~19.7M BTC | 21,000,000 BTC |
Example (Ethereum) | ~120.2M ETH | ~120.2M ETH | No hard cap (inflationary) |
Governed By | Protocol issuance & burn mechanisms | Market liquidity & vesting schedules | Protocol's consensus rules |
token-standard-implementation
TECHNICAL SPECIFICATION
Implementation in Token Standards
This section details how the concept of **total supply** is defined, managed, and queried across different blockchain token standards, focusing on the technical implementation within smart contracts.
The total supply of a token is a critical state variable explicitly defined within a token contract's code. In the ERC-20 standard, it is typically implemented as a public state variable (e.g., uint256 private _totalSupply;) that is minted upon contract deployment or through a minting function. The standard mandates a totalSupply() function that returns this value, providing a read-only interface for wallets and decentralized applications (dApps) to query the definitive circulating figure. This implementation ensures a single source of truth on-chain, distinct from off-chain estimations of circulating supply which may exclude locked or reserved tokens.
Implementation varies significantly with token type. For non-fungible tokens (NFTs) under standards like ERC-721 or ERC-1155, the concept of total supply is often dynamic. Instead of a single supply variable, it is typically derived from the sequentially incremented token ID upon minting or by querying the contract for the count of minted tokens. Soulbound tokens (SBTs) and other non-transferable tokens implement total supply similarly to ERC-20 but with minting logic that permanently binds tokens to addresses, preventing burns or transfers that would otherwise alter the supply. This immutability is a key feature of their implementation.
Advanced tokenomics require more sophisticated supply management. Rebasing tokens or elastic supply tokens, such as Ampleforth (AMPL), implement total supply as a variable that algorithmically adjusts all holder balances proportionally at set intervals. The totalSupply() function in these contracts returns the current, post-rebase value. Conversely, deflationary tokens implement a totalSupply that decreases over time through a burn mechanism, often triggered as a fee on transactions. This is coded as a reduction of the _totalSupply variable and the sender's balance within the token's transfer function.
Developers must carefully architect access control for functions that modify total supply, such as mint and burn. These are typically protected by the onlyOwner modifier or a dedicated minter role to prevent unauthorized inflation. Furthermore, proper implementation requires adherence to the specific standard's interface to ensure compatibility with the broader ecosystem, including block explorers, decentralized exchanges (DEXs), and wallets. Incorrect implementation can lead to tokens being unrecognized or malfunctioning within standard DeFi protocols.
examples
TOKEN ECONOMICS
Examples of Total Supply Models
Total supply is not a one-size-fits-all concept. Different blockchains and token standards implement distinct models, each with specific monetary policies and governance mechanisms that directly impact scarcity, inflation, and long-term value.
01
Fixed Supply (Capped)
A predetermined, immutable maximum number of tokens that will ever be created. This creates absolute scarcity, similar to a commodity like gold. The supply is typically minted at genesis or through a one-time event.
- Key Mechanism: Hard-coded cap in the smart contract or protocol rules.
- Example: Bitcoin (BTC) has a fixed supply of 21 million coins, enforced by its consensus rules. Binance Coin (BNB) originally had a fixed supply of 200 million, with a portion burned quarterly.
02
Inflationary Supply
A supply that increases over time according to a predefined issuance schedule. New tokens are typically created as block rewards for validators or miners, serving as network security incentives.
- Key Mechanism: Protocol-defined emission rate (e.g., X new tokens per block).
- Example: Ethereum (ETH) post-Merge has a low, variable net issuance depending on staking activity. Many Layer 1 chains like Solana (SOL) and Avalanche (AVAX) use controlled inflationary models to reward validators.
03
Deflationary Supply (Burning)
A supply that decreases over time through token burning mechanisms. Burns permanently remove tokens from circulation, often using transaction fees or protocol revenue.
- Key Mechanism: A portion of fees or tokens is sent to an irretrievable address (e.g.,
0x000...dead). - Example: Ethereum's EIP-1559 burns a base fee from every transaction, making ETH potentially deflationary during high network usage. BNB uses a quarterly burn mechanism based on exchange profits.
04
Dynamic/Governance-Controlled Supply
A supply model where the issuance rate, cap, or burning mechanisms are not fixed in code but can be adjusted through on-chain governance votes by token holders.
- Key Mechanism: Governance proposals and voting to modify monetary policy parameters.
- Example: Maker (MKR) tokenholders vote on Dai Savings Rate (DSR) and other system parameters that influence the ecosystem's economic dynamics, indirectly affecting demand and supply pressures.
05
Uncapped Supply
A supply with no pre-defined maximum limit. The issuance rate is usually governed by protocol rules or community governance to meet functional needs, such as paying for services or rewards.
- Key Mechanism: Continuous, often need-based minting according to protocol rules.
- Example: Stablecoins like DAI and USDC are minted (uncapped) when users deposit collateral and burned when loans are repaid. The Graph (GRT) has an uncapped supply with a defined annual issuance rate (currently 3%) for indexing rewards.
06
Circulating vs. Total Supply
A critical distinction in token metrics. Total Supply is all tokens that exist (minus any verified burns). Circulating Supply is the portion of tokens publicly available and trading on the market.
- Key Difference: Tokens may be locked in vesting schedules, held by foundations, or staked, reducing the liquid circulating supply.
- Impact: Market capitalization is calculated using Circulating Supply, not Total Supply. A large locked portion can lead to future supply dilution upon release.
security-considerations
TOTAL SUPPLY
Security and Economic Considerations
Total Supply is the maximum number of tokens that will ever be created for a cryptocurrency or token. It is a fundamental economic parameter that influences scarcity, inflation, and long-term value.
01
Definition and Calculation
Total Supply is the sum of all tokens that currently exist (circulating supply) plus any tokens that are locked, reserved, or yet to be minted according to the protocol's rules. It represents the absolute upper limit of token issuance.
- Key Formula:
Total Supply = Circulating Supply + Unreleased/Locked Supply - For Bitcoin, this is the 21 million hard cap. For Ethereum, it is a dynamically adjusting supply based on issuance and burn.
- It is distinct from Max Supply, which is the theoretical maximum if all future minting occurs.
02
Inflation and Scarcity
The relationship between total supply and the rate of new token creation (issuance) defines a network's monetary policy.
- Fixed Supply (Deflationary): A hard-capped total supply (e.g., Bitcoin's 21M) creates absolute scarcity, making the asset inherently disinflationary.
- Uncapped or Adjustable Supply (Inflationary): Protocols without a fixed cap (e.g., traditional fiat, some DeFi tokens) can use ongoing issuance to fund security or rewards, which can lead to inflation if not offset by demand.
- EIP-1559 and Burning: Mechanisms like Ethereum's base fee burn can make net supply deflationary even with ongoing issuance, creating a dynamic total supply.
03
Security Implications
Total supply and its distribution are critical for cryptoeconomic security, especially in Proof-of-Stake networks.
- Stake Distribution: A highly concentrated token supply among a few entities increases centralization risk and can threaten network consensus.
- Validator Incentives: Sustainable issuance rates (a function of total supply growth) must adequately reward validators/stakers to secure the network without causing excessive inflation.
- Attack Cost: In PoS, the cost to attack the network is often tied to the total value staked, which is influenced by the token's scarcity and market value.
04
Vesting and Unlocks
A significant portion of a token's total supply is often allocated to teams, investors, and foundations with vesting schedules. These scheduled unlocks can impact market dynamics.
- Circulating Supply Dilution: Large, scheduled unlocks increase the circulating supply, which can create sell pressure if demand doesn't match the new supply.
- Transparency: Projects should clearly disclose vesting schedules. Analysts track fully diluted valuation (FDV) which values the project as if the total supply were already circulating.
- Example: A project with a 1 billion token total supply might only have 100 million circulating at launch, with the rest vesting over 3-4 years.
05
Governance and Utility
In governance tokens, total supply directly impacts voting power and the cost of acquiring influence.
- One-Token-One-Vote: Systems where voting power is proportional to tokens held mean that control can be concentrated if supply is unevenly distributed.
- Utility Sinks: Protocols can design token burns or lock-up mechanisms (e.g., veToken models) to effectively reduce the actively circulating supply, increasing scarcity for dedicated users.
- Treasury Management: Foundation or DAO-controlled portions of the total supply must be managed transparently, as their deployment (grants, liquidity provisioning) significantly affects the token economy.
06
Analysis and Valuation Metrics
Total supply is used to calculate key metrics for fundamental analysis.
- Market Capitalization:
Price x Circulating Supply. Reflects the value of currently tradeable tokens. - Fully Diluted Valuation (FDV):
Price x Total Supply. Represents the project's valuation if all tokens were in circulation. A high FDV-to-MCap ratio can signal future dilution. - Inflation Rate:
(New Annual Issuance / Total Supply) x 100. Measures the annual percentage increase in supply. - Network Security Ratio: Metrics like Stake Ratio (
Total Staked / Total Supply) help assess PoS chain security.
TOTAL SUPPLY
Frequently Asked Questions (FAQ)
Clear answers to common questions about total supply, a fundamental metric for analyzing a cryptocurrency's monetary policy and valuation.
Total supply is the total number of coins or tokens that currently exist for a given cryptocurrency, accounting for all minted units minus any that have been verifiably burned or permanently removed from circulation. It represents the current, active supply in the market and is distinct from the maximum supply, which is the hard-coded upper limit a protocol will ever create. For tokens without a burn mechanism, the total supply may equal the circulating supply if all tokens are liquid. This metric is crucial for calculating metrics like fully diluted valuation (FDV) and understanding inflationary or deflationary pressures on an asset's price.
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