2 ms·

I don't understand how emission rate is related to market cap?

• tromp 4y ago
  If 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.