Definition
Max supply is the total number of coins or tokens that are allowed to exist for a specific cryptocurrency, according to its underlying design. It represents a hard cap or upper limit that cannot be exceeded unless the rules of the system are changed. This concept is a core part of tokenomics, because it helps define how scarce or abundant a digital asset can be over its lifetime.
Max supply is different from circulating supply, which counts only the coins or tokens currently available and moving in the market. Some assets may not have a strict max supply, while others set a clear limit that is enforced by the protocol. Events such as halving, burn, and mint processes influence how quickly the supply moves toward its maximum, but do not change the defined cap itself unless explicitly programmed.
Context and Usage
In many decentralized finance (DeFi) projects, max supply is specified in the project’s documentation or smart contracts as part of its tokenomics. It provides a reference point for understanding how the asset’s supply might evolve over time relative to its circulating supply. A known max supply can make it easier to describe whether a token is designed to be inflationary, deflationary, or relatively stable in quantity.
Mechanisms such as mint and burn adjust the number of tokens in existence at any given moment, but they operate within the boundaries set by the max supply. In some systems, halving events slow the rate at which new units are created as the asset approaches its cap. Across DeFi and broader crypto markets, max supply is treated as a fundamental attribute of a token’s economic design rather than a short-term market metric.