The increase in Floating Supply

What are emissions?

An emissions rate is the rate at which tokens are issued onto the marketplace. Another word for emissions is inflation. Like fiat money inflation, emissions in crypto put price pressure on the asset. In essence, a token with a high emissions rate must be able to stimulate more demand that they issue tokens on the marketplace. Otherwise, prices will fall.

Xerberus calculates emissions fundamentally differently from other platforms. The traditional way of calculating circulating supply and jumping off from their emissions is to take the total supply and subtract the tokens in "known" project wallets. This is a widespread approach, but it does not show an accurate picture, so we created a new term called Float. Float is based on the Token Distribution Over Time.

  • Yearly Emissions: The number of new tokens entering the float over a year.

  • Monthly Emissions: The number of new tokens entering the float over the last month.

Note: It is wise to look at both rates simultaneously to distinguish a project that issued many tokens simultaneously from a project that constantly issued tokens.

Why care about floating supply so much?

Prices are based on the demand and supply of tokens. However, the effective supply against which demand stands is the supply available to the market that actually trades, not the theoretically available supply. Tokens that have never been sold or bought before are given to team members, which are not open to the public to be sold or purchased and have no direct impact on the market price. People can indirectly speculate about the potential effects of future sell-offs, but the current market prices are based on the actual trading, that is, on the real float.

If there is no sufficient demand to buy the increase in float, the prices will fall. The same cannot be said about circulating supply, as circulating supply tokens that are unlocked can be stored for years in founder wallets without impacting the market price.

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