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Definition emissionsmintingnew supply

Token Issuance

The creation of new units of an asset, either by a blockchain's own rules or by a contract that mints tokens.

Protocol issuance is payment for security: proof-of-work chains pay a block subsidy to miners, and proof-of-stake chains pay newly created units to validators for proposing and attesting to blocks. Contract issuance is payment for growth or for people: liquidity mining programs mint tokens to depositors, and team or investor allocations are often minted on a schedule. Issuance is a gross figure, so on chains that also destroy units it must be compared with burns to see whether supply actually grew. Readers meet it as an annualized rate, as units per block or per epoch, and as the emissions column in a tokenomics table.

In practice

On a proof-of-stake network, the units paid to validators for attesting to blocks are issuance, funded by expanding supply rather than by a customer paying a bill.

The common misunderstanding

Issuance is not free funding for a protocol: every new unit reduces the share of supply held by everyone who did not receive it.

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The figure this maps to

Token Issuance Rate

How many new tokens the protocol creates each day, before any are destroyed.

Limits: Providers differ on whether vesting releases count as issuance: those tokens already exist and are simply becoming transferable, so a source that includes them measures something different from one that counts only protocol-level minting. On proof-of-stake chains the reward rate varies with how…

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Related terms

Dilution The fall in each holder's share of total supply that happens when new units are created and given…
Emission Schedule The published plan for how many new units will be created over time and who receives them.
Inflation Rate (Token Supply) How fast a digital asset's supply is growing, expressed as a yearly percentage of the supply that…
Net Issuance New units created over a period minus units destroyed, showing whether supply actually grew or…
Staking Yield The rate of rewards a staker earns, usually quoted as a yearly percentage of the amount staked.
Token Burn Permanently destroying units of an asset, either by deleting them in the contract or by sending…
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