Fully Diluted Supply

Fully Diluted Supply represents the maximum number of tokens that will ever exist in a blockchain network according to its protocol design. This figure includes tokens currently in circulation, as well as those held in smart contracts for future distribution, ecosystem grants, or team compensation.

It serves as the upper bound for the asset's total supply. When investors analyze this metric, they are looking at the absolute ceiling of the token supply.

It is crucial for understanding the potential impact of future token unlocks on the market price. Without considering this, one might underestimate the inflationary pressure inherent in the token design.

Protocol physics dictate how and when these tokens enter the market. This metric is a cornerstone for evaluating the long-term economic sustainability of a project.

It allows for a more accurate comparison between different assets regardless of their current release schedule.