Maximum Supply(Maximum Supply) Beginner's Guide
Maximum Supply refers to the maximum number of units of a crypto asset that can ultimately exist under its design rules. Understanding this limit and comparing it with total supply and circulating supply helps explain the asset's issuance structure, but it cannot be used to predict price movements.
Maximum Supply What Is
Maximum Supply(also known as max supply) is the hard maximum number of units of a cryptocurrency that can ultimately exist, including both units already created and units scheduled for future issuance. Once the limit is reached, the protocol no longer permits new units to be created through mining, minting, or other means.
How Is the Supply Cap Set
Most cryptocurrencies with a supply cap specify their supply limits and issuance rate in the underlying protocol and source code. These parameters typically take effect starting from the genesis block.Bitcoin's cap is units, with new units entering circulation through gradually decreasing mining rewards;Ethereum has no fixed cap.
Differences from Other Supply Metrics
Maximum Supply is the ultimate limit an asset may reach;total supply is the amount already created, minus permanently burned units, that remains in existence;circulating supply counts only the portion currently available for public ownership and circulation. Used together, the three metrics provide a clearer view of issuance arrangements and potential scarcity, but they do not guarantee changes in value.
Original Tutorial
https://www.binance.com/en/academy/glossary/maximum-supply
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