Fixed supply cryptocurrency: what it means and how it works
A fixed supply cryptocurrency has a maximum coin count set by its code. New coins can still be issued until that cap, which network consensus enforces.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
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The cap is a design choice about scarcity, not a promise that a coin will hold value.
How does fixed supply work?
The protocol writes a maximum number of coins into its rules, along with a schedule for releasing them. New coins enter circulation block by block until the maximum is reached, and then issuance stops. Nodes and validators check every block and reject one that breaks those rules, so a company cannot raise the cap on its own. A hard fork could change the rules if the network agrees to run the new software.
What changes circulating supply?
Circulating supply is the number of coins that are available to spend or trade. It can sit below the maximum when coins are burned or lost. Those coins still count against the cap, so the maximum itself does not move.
How is it different from inflationary crypto?
Inflationary crypto has no cap, or a cap that rises over time, so new coins keep entering circulation. That is the main difference between the two models.
How do you check a coin's supply cap?
Block explorers usually show maximum supply and circulating supply as separate fields, and project documentation states the cap too. Comparing the two numbers shows how far issuance has to go.
Frequently asked questions
Yes. Bitcoin is the best-known example, and its cap has been part of the network's rules since it launched.
Yes. Rewards usually come from new coins until the cap is reached, or from transaction fees paid by users after that.
A deflationary cryptocurrency is one whose circulating supply tends to fall, usually through burns or lost coins. A fixed cap alone does not make a coin deflationary.
