Hard cap
economics · tokenomics
The maximum supply a cryptocurrency protocol permits, enforced by consensus rules or token contract logic.
- Also known as
- maximum supply, max supply
A hard cap is a fixed upper bound on total supply. For proof-of-work coins like Bitcoin and Bitcoin Cash, consensus rules enforce it through a subsidy schedule that declines over time and eventually stops issuing new coins.
A hard cap makes issuance predictable, but scarcity alone does not create value. Demand, security, liquidity, utility, and trust in the rules all matter.
Related terms
Emission Schedule
→An emission schedule defines when and how quickly new coins or tokens enter circulation.
economics · mining
Halving
→A scheduled reduction in block subsidy that cuts new coin issuance, often by half, at predetermined block heights.
mining · event
Fair Launch
→A contested distribution label for projects that claim to avoid privileged pre-launch allocations or access.
token · distribution
Inflation
→A sustained rise in the general price level, reducing a currency's purchasing power over time.
economics · macroeconomics