@walton21
A token with an excessively high circulating supply may face downward price pressure due to oversupply. High circulation often occurs when vesting schedules are too aggressive or inflationary rewards are not balanced by demand. To maintain stability, projects should carefully manage token emissions and implement mechanisms like staking or buybacks to reduce sell pressure. Transparent communication about circulating supply trends is essential to build investor confidence. Sustainable supply growth ensures that new tokens entering the market are matched by organic demand, preventing severe dilution of existing holders and preserving long-term token value.
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