Tokenomics, Circulating Supply and Burned tokens

By the Coinscope Team·09 Oct 2021·

Smart Contracts have unlocked unlimited possibilities. The most important feature is the ability to execute a script that decides what to do on every transaction.

Tokenomics describes the way that the total supply of the token is distributed to the addresses. Initially, when the smart contract is created, the tokens are moved to the issuer's wallet. Then, the issuer decides how the tokens will be distributed.

How tokens are burned

A quite frequent process is burning tokens. The process of burning the tokens is by moving them in the dead addresses. The dead addresses are not accessible by any user or application. That means that when the tokens are moved there no one can access them or send them back to an active address. Once the tokens are moved there, they are assumed as dead.

The dead addresses are usually:

0x0000000000000000000000000000000000000000
0x0000000000000000000000000000000000000001
0x000000000000000000000000000000000000dead

What is the Circulating Supply

The total supply of the token minus the burned amount equals the circulating supply. Essentially, the circulating supply describes the number of tokens that are accessible from the blockchain and are applicable to be transferred.

Circulating Supply = Total Supply - Burned Amount

Track the Burned and Circulating Supply

The coin page of the Coinscope, depicts the burned amount and the circulating supply. It automatically detects all the transfers to the dead addresses. This feature eases the investor to track the coins without investigating the transactions from the blockchain tracker.

By the Coinscope Team·09 Oct 2021·

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