What factors determine the circulating supply of Ethereum?

1 answers

• Anup PandeyAug 15, 2024 · a year ago
  The circulating supply of Ethereum is influenced by various factors. One of the main factors is mining rewards. Miners who contribute computing power to the Ethereum network are rewarded with newly minted Ether. This increases the circulating supply as more Ether is introduced into the market. Another factor is token burning. Some Ethereum tokens may implement mechanisms to burn or destroy tokens, reducing the overall supply. Token lock-ups and vesting schedules can also impact the circulating supply by limiting the availability of tokens. It's important to note that the circulating supply can change over time due to these factors, as well as other market dynamics. Understanding these factors can provide insights into the overall supply and demand dynamics of Ethereum.
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