Token supply explained: circulating, total, and max
Learn the difference between circulating supply, total supply, and max supply. Understand how supply mechanics affect a token's economics and why they matter.
Circulating supply is the number of tokens actively trading in the market. Total supply is how many tokens currently exist, including locked ones.
Max supply (hard cap) is the absolute ceiling, no more tokens can be created once it is reached. Market cap is calculated as price multiplied by circulating supply; fully diluted valuation (FDV) uses max supply instead.
Understanding these three numbers is the basis for evaluating any token's economics, emission projections, and scarcity.
What are the three types of token supply?
Three numbers, three very different meanings.
Max supply (hard cap) is the ceiling: the absolute maximum of tokens that can ever exist. Once reached, no more can be created. Bitcoin has a hard cap of 21 million. Ethereum does not have one.
Total supply is how many exist right now, minus any that have been permanently burned. This includes tokens in circulation, tokens locked in contracts, and tokens in team or reserve wallets.
Circulating supply is what actually moves in the market. It excludes tokens locked in vesting contracts, staking contracts, team allocations, or anything else that prevents trading.
Market cap = Price x Circulating supply. This is why circulating supply matters more than total supply for evaluating current market value. A token with a high price but low circulating supply may have a smaller market cap than a cheaper token with much more supply in the market.
Fully diluted valuation (FDV) = Price x Max supply. This gives you the hypothetical market cap if all tokens were in circulation. Comparing market cap to FDV shows how much future emission could affect the token's economics.
How does staking affect a token's circulating supply?
When tokens are staked, they move from circulating supply into locked contracts. They still exist (counted in total supply), but they are not available for trading. This reduces the effective supply on the market.
The practical effect: fewer tokens available for sale means less sell pressure. When combined with capped emission, staking creates a dynamic where the supply available for trading grows slowly and predictably.
On the INKY token, emission is capped at 20,000 INKY a day across both ceilings. As more INKY is staked, a larger portion of the total supply is locked. The interplay between emission (new tokens entering) and staking (tokens being locked) determines how the circulating supply evolves over time.
You can verify these numbers independently. The total supply and holder distribution are visible on BscScan. Staking contract balances are public on-chain.
Frequently asked questions
Where can I check a token's supply?
On aggregators like CoinMarketCap or CoinGecko, or directly on the block explorer (BscScan for BEP-20 tokens). The block explorer is the most reliable source because it reads directly from the contract.
Is a lower supply always better?
Not necessarily. Supply alone does not determine value. A token with 1 billion units and strong utility can be worth more than a token with 1 million units and no use case. Supply matters in context with demand, utility, and emission mechanics.
Can a project increase the max supply?
Only if the contract allows it. Immutable contracts cannot be changed. Upgradeable contracts may allow parameter changes through governance or admin functions. Checking contract mutability is part of evaluating a token. Learn about tokenomics.
Next steps
Explore more:INKY Token to see supply mechanics in action. Supply Documentation for full parameters.
Verify INKY supply on-chain
All INKY supply data is public on BscScan. Check total supply, holder distribution, and staking contract balances independently.
Investments in crypto assets involve risks, including price volatility and risk of partial or total loss of the invested amount. Digital tokens are not legal tender. This content is informational and does not constitute investment advice.