Circulating Supply why the difference in coins

[jayman5]

Why have dev`s made Circulating Supply so large for their coins?

Some are in the tens of billions & even trillions.

Why didn't they just follow Bitcoin at 21 million, or just limited to 100 million or so?

The reason i ask is the price movement over $1 on some of the coins with the larger supply will always be limited. On coinmarketcap there isnt any coin out there with a CS in the billions more than $2-5 max. The simple reason is the marketcap = price x CS. Your not going to get a bigger marketcap than BitCoin for now anyway.

For XRP for example to hit $100 it would have a MC bigger than the GDP of the US, of course thats not going to happen

[Charles-Tim]

The developers will have the best answers. Probably because they want people to think that their coin will get to $1. Because such coin have many zeros. Many people do not look at marketcap but think a coin can rich $1 and buy because of that. I am not sure but it is just a guess. But some coins have high price but low marketcap. The supply does not mean anything. What that matters is adoption. The higher the supply the lower are the price.

[JeromeTash]

To make more money from greedy people who think that $0.000001 can turn into $100 after a few years. I mean, look at the people or developers behind Shiba Inu or Pepe. They must be smiling their way to the ATMs every day after turning into millionaires because there are gullible people out there that can still be fooled.

It's easier to convince someone that $0.00001 will at one point turn into $0.1 vs $1 turning into $10,000

[Ojima-ojo]

Every coin has its development strategy and as long as it is a centralized coin, the dev team will always want to have the final say in minting the coin and its total supplies is the business of the team and its investors because these two sets of people will either be the benefactor of the total supply of the coin, while the developers are at advantage, the investor's success in investment also depends on the total supply and how the developers intend to keep such supply shortly.


Bitcoin has a static circulating supply of 21 million Bitcoin and as a decentralized coin, Bitcoin will remain at that number, unlike some altcoins that could mint billions of coins within time intervals all to dump it to keep making profits this is what makes Bitcoin different from all the other altcoins.

[nelson4lov]

The simple answer is that not all projects are created the same.

Some founders are more greedy than others and as such would always opt to make a token economics that will favour them more than it would favour their community. That's why we have different "standards".

Also, if we're being honest, it would be boring if all projects have the same token economics. The fact that it's different makes it much more fun in a way especially for someone that love these altcoin plays.

[BitJannik]

Focusing on price alone can be misleading. The market cap which is the circulating supply multiplied by the price is the real indicator of a project's size and adoption. Coins with large supplies, like those in the billions or trillions, will naturally have lower prices per unit but that doesn't make them less valuable. Developers structure supply based on their vision not just to drive high prices.

[FinneysTrueVision]

There are some psychological factors that are taken into consideration when deciding a token’s total supply. It is easier for people to understand whole numbers instead of decimals. Buying 25,000 tokens is simpler to comprehend than 0.0025. Many tokens will start off with a large supply initially, and when it has been widely distributed, developers will introduce deflationary mechanisms to reduce the amount that is in circulation.

[JeffBrad12]

probably to make this feeling that this coin is still cheap to make people buy it.

honestly, for the most part, I think even the dev has no valid reason to inflate the circulating or total supply so high, because at the end of the day smart investors judges from FDV and current Mcap from the circulating supply.

but truth to be told, there are investors and traders who trade based on the coin price, which is ridiculous, but I guess this kind of gimmick still works.

[Z_MBFM]

Why have dev`s made Circulating Supply so large for their coins?

Some are in the tens of billions & even trillions.

Why didn't they just follow Bitcoin at 21 million, or just limited to 100 million or so?

The reason i ask is the price movement over $1 on some of the coins with the larger supply will always be limited. On coinmarketcap there isnt any coin out there with a CS in the billions more than $2-5 max. The simple reason is the marketcap = price x CS. Your not going to get a bigger marketcap than BitCoin for now anyway.

For XRP for example to hit $100 it would have a MC bigger than the GDP of the US, of course thats not going to happen

Project teams make different calculations according to their project category to determine their token supply.  Like token price, marketcap etc. Bitcoin was created with many things in mind when it was created. I am not a project team so can't give proper explanation on this. You can ask this question in a project's Telegram, Discord support or ask it in an AMA to get the right answer. because I don't know someone can tell you right reasons about it

[Patikno]

As @Charles-Tim said, developers probably have answers you would rather hear from them. But if we look at what is happening with memecoins right now, I think they are creating a high supply to make the price per token more affordable. It also helps to increase the distribution & ownership of the token. Bitcoin has 21,000,000 for its total supply, while the world population is more than that.

[jayman5]

A classic example is Maker MKR, ive hardly heard anyone mention Maker let alone anyone who owns any, yet it has a price of $1590, with just 891,430 and max supply just over a million.

[passwordnow]

Why have dev`s made Circulating Supply so large for their coins?

Some are in the tens of billions & even trillions.

Why didn't they just follow Bitcoin at 21 million, or just limited to 100 million or so?

Because that's what they think is right. Otherwise, it's a random call for the supply limit and that's why they create millions to billions and even trillions.

The reason i ask is the price movement over $1 on some of the coins with the larger supply will always be limited. On coinmarketcap there isnt any coin out there with a CS in the billions more than $2-5 max. The simple reason is the marketcap = price x CS. Your not going to get a bigger marketcap than BitCoin for now anyway.

For XRP for example to hit $100 it would have a MC bigger than the GDP of the US, of course thats not going to happen

It's always been the supply and demand. And you're right about these coins like XRP for them to have that price, they need to have a very huge market cap.

A classic example is Maker MKR, ive hardly heard anyone mention Maker let alone anyone who owns any, yet it has a price of $1590, with just 891,430 and max supply just over a million.

There are others that has lesser supply too like BCH, XAUt(other XAU coins), yfi, but it's about the preference of each of us.

[o48o]

Why have dev`s made Circulating Supply so large for their coins?

Some are in the tens of billions & even trillions.

Why didn't they just follow Bitcoin at 21 million, or just limited to 100 million or so?

The reason i ask is the price movement over $1 on some of the coins with the larger supply will always be limited. On coinmarketcap there isnt any coin out there with a CS in the billions more than $2-5 max. The simple reason is the marketcap = price x CS. Your not going to get a bigger marketcap than BitCoin for now anyway.

For XRP for example to hit $100 it would have a MC bigger than the GDP of the US, of course thats not going to happen

Why would it matter? If you are looking at the value only, it doesn't really matter how many coins you get when you are buying it with $1k usd worth. If total supply isn't radically higher than circulating supply (which could mean dilution risk), there's really no benefit to own more or less full coins. Outcome is the same.

Benefit for developing a coin with larger supply could be because of technical reasons, and i am not right guy to give detailed reasons of doing that. But i totally see more benefits having more decimal places than bitcoin, given that eventually bitcoin needs to add more than 8.

[Lida93]

The supply does not mean anything. What that matters is adoption. The higher the supply the lower are the price.

The supply limit of every coin plays a crucial role to its adoption pace and we can find that with bitcoin as a  clear example. I noticed investors don't really give much attention to those coins with large supply especially for those amounting to billions in supply as the idea is that such coins are mainly shitcoins and lacks some appreciable level of scarcity in supply. It's safe to say that one major reason why every investor would want to own some bitcoin than any other coin is due to its supply limit of 21m  aside other unique features.

[TastyChillySauce00]

To make more money from greedy people who think that $0.000001 can turn into $100 after a few years. I mean, look at the people or developers behind Shiba Inu or Pepe. They must be smiling their way to the ATMs every day after turning into millionaires because there are gullible people out there that can still be fooled.

It's easier to convince someone that $0.00001 will at one point turn into $0.1 vs $1 turning into $10,000

agreed with this one, i still remember people keep talking about how SHIB might reach $1 while in reality speaking of market cap and how big it is already $1 is nothing but a dream even with the burning that they are doing.
as you said it's just to trap gullible people.

but at some point I also think the project founder purposefully make their total supply so high just to make it easy to allocate things to community, people gonna be mad if they got 100 token of airdrop, but they're happy if they got 15k token of airdrop despite the value being the same .

[Charles-Tim]

The supply does not mean anything. What that matters is adoption. The higher the supply the lower are the price.

The supply limit of every coin plays a crucial role to its adoption pace and we can find that with bitcoin as a  clear example. I noticed investors don't really give much attention to those coins with large supply especially for those amounting to billions in supply as the idea is that such coins are mainly shitcoins and lacks some appreciable level of scarcity in supply. It's safe to say that one major reason why every investor would want to own some bitcoin than any other coin is due to its supply limit of 21m  aside other unique features.

I do not agree with this. What that is important is the whole design. Let me use bitcoin as an example as you used it. Assuming bitcoin total supply is not 21 million BTC but 210 million BTC. If miners are earning 500 BTC reward at the start instead of 50 BTC. And the 500 BTC reward is halving every 210000 blocks, the price of bitcoin today will be $9500 instead of $95000. Which means nothing still changed.

[asriloni]

Why have dev`s made Circulating Supply so large for their coins?

Some are in the tens of billions & even trillions.

Why didn't they just follow Bitcoin at 21 million, or just limited to 100 million or so?

The reason i ask is the price movement over $1 on some of the coins with the larger supply will always be limited. On coinmarketcap there isnt any coin out there with a CS in the billions more than $2-5 max. The simple reason is the marketcap = price x CS. Your not going to get a bigger marketcap than BitCoin for now anyway.

For XRP for example to hit $100 it would have a MC bigger than the GDP of the US, of course thats not going to happen

You meant total supply, right?

Dev has various reasons why they made their supply big instead of issuing less tokens. Some may be their ecosystem needs a lot of tokens, and they decided to issue token with huge supply, but i think this doesn't really matter.

The value for the token comes from how valuable the project itself. It can't be a serious concern.  It doesn't really matter how much total supply, and won't give so much impact.

[JeromeTash]

-snip-

Numbers Numbers Numbers… it's always about numbers
Some people feel good owning 1 billion tokens vs just a few hundred. They never always think about the circulating supply or the marketcap.

They think that by some magic, they can easily become millionaires or billionaires once the tokens they are holding hit $1 each

[justdimin]

Why have dev`s made Circulating Supply so large for their coins?

Some are in the tens of billions & even trillions.

Why didn't they just follow Bitcoin at 21 million, or just limited to 100 million or so?

The reason i ask is the price movement over $1 on some of the coins with the larger supply will always be limited. On coinmarketcap there isnt any coin out there with a CS in the billions more than $2-5 max. The simple reason is the marketcap = price x CS. Your not going to get a bigger marketcap than BitCoin for now anyway.

For XRP for example to hit $100 it would have a MC bigger than the GDP of the US, of course thats not going to happen

I agree that each dev would have their own response, it is not a same answer thing, we can't possibly know it for every single one of them. I know a few, because they said bigger numbers attract people more in a marketing manner, having 10 million of something instead of 0.3 of something made them feel better, so they decided to do more, but that's just what I know, and a few examples, not really an exact science situation.

Others may have done for different reasons, like for transaction fees, or maybe bounty reasons, whatever else you can think of. So when you see something like that, you have to ask the devs or the team on why they did it and they will give you an answer about it, and most could be different from each other.

[markm]

With bitcoin it was largely dictated by the number of "bits" used to represent the numbers internally.

Each size of integer-representation has a "MAXINT" value, the maximum integer it can represent while still being able to represent the integer "one".

Like if you use only 8 bits your max is 255.

You could have each one mean a million this be able to represent up to 255 million, but, only in whole millions.

So bitcoin chose a size of integer to use not just internally in the code but across the network.

It is easy to use larger integer sizes in the code, but changing the network representation involves consensus, much harder to change.

So in effect each decimal you are going to allow on the small end is a digit (at some "base" or other, natively a binary digit) you don't have at the high end.

Thus choosing to have 8 decimals limited how many total coins one could have and still retain representational precision.

Coins using bitcoin native code's integer representation thus rightfully ought to lack a decimal for each multiplying of the high end of how many coins one can send in one transaction, since sending goes across the network.

Bitcoin can presumably send all 21M of its coins in one TXOUT, things with billions of coins but still 8 decimals likely cannot store all in a single TXOUT.

But hey maybe ETH's compute unit uses larger integers so tokens on ETH maybe have more bits available to represent values with?


-MarkM-