4 ms·
> small market cap (again, not necessarily a scam, but a big red flag. That's not a red flag if the emission is very slow, e.g. a pure linear emission that tak
by tromp 4y ago
> small market cap (again, not necessarily a scam, but a big red flag.
That's not a red flag if the emission is very slow, e.g. a pure linear emission that takes a century to reach the soft total [1].
[1] https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153 https://john-tromp.medium.com/a-case-for-using-soft-total-su...
- ahtihn 4y agoI don't understand how emission rate is related to market cap?
- tromp 4y agoIf two coins A and B are the same in every respect except that A emits its capped supply of N coins evenly over 10 years, while B emits its identical capped supply of N coins evenly over 20 years, then B's emission rate is half that of A (twice as slow). After 10 years, when A's emission finishes, A's marketcap will be much higher than that of B, maybe twice as much, since B has only emitted N/2 coins, and A's price should roughly at least that of B. In other words, a coin's price is determined more by its total supply than by its current supply, to reflect future dilution.