kaspatalk

Whats the benefit of not making it a smaller supply people have to get out of the token instead of having it all upfront?

quiet a good question, im sure someone on here will be able to enlighten the both of us as to what the reasoning is behind the max supply. personally i would have been in favor of a smaller max supply and block reward sizing!

I would haphazard a guess that its to help deal with liquidity in the pools after the amount of volume jumps.

what ? how does that change anything ? less quantity = higher price... liquidity in pools is irrelevant

Maybe to help with support price?

Imo only logical reasoning to having a large influx of coins at an early point and a huge supply which is as good as a premine, is there a chance the early adopters/devs chose this route purposely to grab large amounts of coins and fill bags in the early phase before it was popular while still remaining true to the no premine status not only that but it raises suspicion for potential market manipulation, and early offloading with release of positive news while selling a total different marketing ploy onto the unaware general public

How do devs decide the max supply of a project?

VoltesGains wrote: ↑Tue Mar 28, 2023 12:52 pm How do devs decide the max supply of a project?

i always wondered the same, and never understood the high max supplies.. because technically you could use any supply as it can always run into decimal points...

MonsterCrypto wrote: ↑Sun Mar 19, 2023 1:28 am Imo only logical reasoning to having a large influx of coins at an early point and a huge supply which is as good as a premine, is there a chance the early adopters/devs chose this route purposely to grab large amounts of coins and fill bags in the early phase before it was popular while still remaining true to the no premine status not only that but it raises suspicion for potential market manipulation, and early offloading with release of positive news while selling a total different marketing ploy onto the unaware general public

This dynamic is no different from Bitcoin. I think it is perfectly fine for the team to mine early when few know about it, they did make it...

Whether the total supply is large or small is largely meaningless from a technical point of view. Marketcap is what matters, why do you care if it is a fixed amount either way?

Whitekey wrote: ↑Wed Mar 29, 2023 3:18 am Whether the total supply is large or small is largely meaningless from a technical point of view. Marketcap is what matters, why do you care if it is a fixed amount either way?

Because small supply means easy for price to go up. Taking into consideration the initial price of the cryptocurrency.

VoltesGains wrote: ↑Thu Mar 30, 2023 12:17 am

Whitekey wrote: ↑Wed Mar 29, 2023 3:18 am Whether the total supply is large or small is largely meaningless from a technical point of view. Marketcap is what matters, why do you care if it is a fixed amount either way?

Because small supply means easy for price to go up. Taking into consideration the initial price of the cryptocurrency.

as in easy to manipulate and cheap at early stages ?

Remember, Kaspa is trying to be a P2P digital cash system. Excessive low supply will cause the coin to turn into a store of value. For a digital cash system, A higher supply is needed. If everyone holds onto Kaspa for years and years, and not use it as digital cash paid for everyday transactions, then Kaspa would become what bitcoin is now (store of value).

with that being said, a $1, $2, $5 Kaspa is feasible in future, but $1,000, $10,000, etc will most likely not happen. If Kaspa had such a low supply similar to bitcoin, no one would want to transact with Kaspa, because why spend it when the buying power goes to astronomic values? you can just hold onto it (store of value).

Also, keep in mind, as of right now, the crypto market is mostly compared to Dollars in terms of price to find the buying power. ex: BTC = $26,000 - KAS = $0.02. we need a comparison unit of currency to find the value of a coin. what's the buying power of 1 BTC right now? well, we need to look at what's the buying power of $26,000, which is a new car for example.



That's my opinion on the subject. could be wrong, so please chime in with your opinions.

The ongoing debate revolves around whether $KAS can truly be considered a currency rather than merely a 'Store of Value.' Kaspa, with its progress in addressing the trilemma, benefits from fast confirmation times, giving it a competitive edge that most other fair-launched cryptocurrencies lack. The key factor lies in people's willingness to use $KAS for daily transactions. However, this is influenced by real-world infrastructures and regulations, elements beyond Kaspa's control. ( * People also tend to hold onto it when they sense that its value is on the rise. This contradicts the primary purpose of a currency.) Can we identify historical instances that demonstrate the behavioural effects of an appreciating currency?

Kaspa has a significant role to play in shaping a future as a Global P2P Payment System and an extensive open financial platform. This is no trivial task, How can we get there is yet to be discovered...

Initiatives like ETFs mark a positive step in the right direction. They not only promote crypto adoption but also drive the development of necessary regulations and compliance standards. Ultimately, this contributes to the growth of the overall user base.

I can add to what Starry nicely put it by saying that first a max supply is in a relationship to market cap to determine its value. Gold for example has less of a supply and greater value because of it, however gold becomes less likely to use in trade for that reason and is generally incentivized to "Hodl". Unlike gold or BTC, Kaspa has more supply and by design to be used as an everyday currency. Its aim is to be that balance where its not a store of value but also holds some value. Currency, is just that and Kaspa's name is Aramaic is "silver" because one of its utilities is to be used and not held like gold. I'll conclude by saying that a lot of people think that a high market cap is inherently a red flag. That isn't the case when you account for market cap and how organic Kaspa is by not having an VC, premine, ICO etc. Best to you.