# Token supply `kaal:entity:token-supply` **Status.** derived This node is assembled mechanically from the 15 claims that carry the concept tag `token-supply`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 15 claims across 6 works, 2017 to 2024. **2017** - [3067615-009](https://wulfkaal.github.io/claims/3067615-009) [mechanism/argued] -- An issuer can pre-define monetary policy in crypto economics by fixing the number of tokens created and issued, and a maximum token issuance combined with controlled token supply releases can make small increases in demand drive token prices higher. > A maximum token issuance in combination with controlled token supply releases can result in small increases in demand driving token prices higher. Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615 - [3067615-011](https://wulfkaal.github.io/claims/3067615-011) [mechanism/argued] -- Adjusting the commercial benefits attached to a token operates as a quasi fiscal policy tool: increasing those benefits raises aggregate demand for a given token supply and can offset the depreciating effect of a large supply in circulation. > First, the increase in commercial benefits associated with a token heightens the aggregate demand of the given token supply. Second, commercial benefits associated with a token issuance can help offset depreciated supply scarcity Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615 - [3067615-023](https://wulfkaal.github.io/claims/3067615-023) [failure/argued] *(failure mode)* -- Because the token supply is controlled by ICO promoters who must reserve tokens for future funding needs, token holders can be diluted by later issuance of reserve tokens and their token value can be diminished without any ability to protect themselves against such events. > Because the token supply is controlled by the ICO promoters, the token holders may be diluted in the future if the platform decides to issue more reserve tokens to additional investors. Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615 - [3071378-035](https://wulfkaal.github.io/claims/3071378-035) [mechanism/argued] -- Because the total supply of DAO tokens is pre-determined in code, dilution by central administrators such as government officials or self-interested or biased executives is impossible. > because the total supply of tokens is pre-determined in the DAO code, dilution by central administrators such as government officials or self- interested or biased executives/supervisors/CEOs is impossible, which further illustrates the power of blockchain structures such as the DAO. Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378 **2018** - [3249860-008](https://wulfkaal.github.io/claims/3249860-008) [mechanism/asserted] -- An issuer's ICO strategy can pre-define the token economy's monetary policy by predetermining the fixed number of tokens created and issued in the ICO. > An issuers' ICO strategy can pre-define monetary policy by predetermining the fixed number of tokens created and issued in the ICO. Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860 - [3249860-009](https://wulfkaal.github.io/claims/3249860-009) [design/argued] *(failure mode)* -- To avoid a token price crash, escrow accounts holding unissued tokens should carry usage and access controls assuring investors that escrowed tokens will not be issued at a discount, with lockups or phased releases minimizing crash risk. > To avoid a token price crash, token escrow accounts should provide usage and access controls that assure investors that escrowed tokens will not be issued at a discount. Lockups of escrowed tokens for a specified time period or phased releases can also help minimize the risks of token price crashes. Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860 - [3249860-030](https://wulfkaal.github.io/claims/3249860-030) [empirical/evidenced] -- The remaining twenty-eight tokens in the dataset use inflationary models that operate similarly to fiat currency, contemplating no maximum issuance and a continuing minting process that gives the issuer more flexibility. > The other twenty-eight tokens in the dataset are using an inflationary token model in various sub-settings. Tokens that utilize an inflationary model often attempt to operate similar to a fiat currency. Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860 **2019** - [3396522-022](https://wulfkaal.github.io/claims/3396522-022) [failure/argued] *(failure mode)* -- Capping token supply, the dominant design choice in early cryptocurrency projects, is self defeating: fixing supply removes the core policy tool, minting additional tokens, that would otherwise address overvaluation, excessive speculation, market frenzy, and irrational exuberance. > In fact, fixing token supply removes the core policy tool, minting of additional tokens to increase supply, intended to address overvaluation, speculation, market frenzy and irrational exuberance. Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522 **2022** - [4015908-010](https://wulfkaal.github.io/claims/4015908-010) [condition/argued] -- Under the fairness to the public definition, a fair token launch requires that the token was launched without a founding team, a foundation, or a founding dev team. > Under this definition, a fair token launch requires that the token was launched without a founding team, foundation, or founding dev team. Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908 - [4015908-011](https://wulfkaal.github.io/claims/4015908-011) [condition/argued] -- Under the fairness to the public definition of fair launch, no early investor may hold a pre-allocation of project tokens or a pre-mining program, and any individual claim to a percentage of token supply before public sale falls outside the definition of fair launch. > under this definition of fair launch, no early investors would be permitted with a pre-allocation of project tokens or with a pre-mining program. Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908 - [4015908-021](https://wulfkaal.github.io/claims/4015908-021) [design/argued] *(failure mode)* -- Equal opportunity access points for public marketing incentives cannot be guaranteed and require constant reevaluation, so the public marketing permission for any fair token launch should be restricted to a limited percentage of total token supply. > These equal opportunity access points cannot be guaranteed and the process is subject to constant reevaluation. The public marketing permission for any fair token launch should be restricted to a limited percentage of total token supply. Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908 - [4015908-028](https://wulfkaal.github.io/claims/4015908-028) [failure/argued] *(failure mode)* -- Whale purchases that soak up token supply at the earliest possible time in a launch are the key problem fair launch platforms address, because they can be the origin of significant centralization that harms the project for the entirety of its active market engagement. > of whale token purchases that soak up supply at the earliest possible time in the token launch. Such whale purchases can be the origin of significant centralization of a token launch that may harm the project for the entirely of its active market engagement. Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908 - [4015908-036](https://wulfkaal.github.io/claims/4015908-036) [design/asserted] -- No more than 40% of total token supply should be auctioned in a fair launch, with 10% serving as a buffer paired with raised funds as permanently locked DEX liquidity and the other 50% allocated to a DEX pair with the raise proceeds to provide long-term locked liquidity. > it is ill advised to auction more than 40% of the total token supply. 10% of token supply should serve as a buffer. paired with the funds raised to form permanently locked liquidity on a DEX. The other 50% should be allocated to a DEX in a pair with the funds from the token raise. Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908 - [4015908-038](https://wulfkaal.github.io/claims/4015908-038) [design/argued] -- Non-linear reward structures using weighting, tiers, or logarithmic curves counteract centralization of token supply by decentralizing disproportionate returns so that rewards do not scale linearly with the amount of liquidity a user holds. > Fair launch protocols can create some form of weighting, tier, and/or logarithmic curves for rewards. This decentralizes disproportionate returns, so they do not scale linearly with the amount user liquidity a user has. Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908 **2024** - [5254152-036](https://wulfkaal.github.io/claims/5254152-036) [failure/evidenced] *(failure mode)* -- A governance design aimed at democratic balance can still centralize power over time when the token supply is fixed, as recorded for MoonDAO. > aims for democratic balance but the fixed token supply could result in centralized power over time (G: 4) Wulf A. Kaal, DAO Market Meta Analysis 2024 (2024). SSRN: https://ssrn.com/abstract=5254152 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/token-supply.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.