What Token Issuance Can Tell

You’re one article away from becoming a crypto master! Last time, we discussed token supply and what it can tell us about the future of a particular cryptocurrency. Today, we’re going to cover another important side of tokenomics — token issuance.

What is it?

Token issuance is the process of creating and releasing new tokens that are added to the current circulating supply. Different blockchains follow their own way of doing it. Tokens can be emitted as a part of a pre-planned release model or mining activities. Usually, this information is available on the site of a cryptocurrency project.

Why is it crucial?

In-built mining rules and a schedule showing the pivotal dates on the cryptocurrency timeline allow us to predict events with some confidence. Thanks to it, we know that the number of coins might change according to these plans. For example, Bitcoin has a timeline of halvings (each 4 years, the amount of new BTC is reduced by half). New MATIC (Polygon) tokens are released in portions every month and have an issuing schedule known in advance. Remember that the more detailed info the network provides on its token emissions, the better.

Token vs. fiat emission

Compared to fiat currencies, crypto issuance is more transparent. With blockchain, you can check and see the numbers in real time with your own eyes, while reports by fiat issuance regulators are usually available with delays and are not easy to verify. What do you choose? To take regulators' words for it or to believe your eyes?

Great work, you mastered yet another challenging subject. Now you’re ready to continue your crypto voyage with more courage!