Are there any best practices for calculating and reporting the circulating supply of a digital asset?

3 answers

• Nov 26, 2021 · 3 years ago
  When it comes to calculating and reporting the circulating supply of a digital asset, accuracy is of utmost importance. One common method is to subtract the total supply of the digital asset by the amount held by the project team, locked in smart contracts, or reserved for future use. It's crucial to ensure that only the tokens actively circulating in the market are considered as part of the circulating supply. Additionally, transparency is key in reporting the circulating supply, and it's recommended to provide regular updates and audits to maintain trust and credibility. Following industry standards and best practices, such as those outlined by reputable organizations like CoinMarketCap, can also help ensure consistency and comparability across different digital assets.
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• Nov 26, 2021 · 3 years ago
  Calculating and reporting the circulating supply of a digital asset can be a complex task, as it requires accurate data and adherence to industry standards. One important consideration is to exclude any tokens that are not actively traded or accessible to the public. This means excluding tokens held by the project team, locked in smart contracts, or reserved for future use. It's also important to regularly update the circulating supply as tokens are minted, burned, or transferred. By providing transparent and up-to-date information, digital asset projects can enhance trust and credibility among investors and the wider community. Following best practices and guidelines set by reputable sources can help ensure accuracy and consistency in calculating and reporting the circulating supply.
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• Nov 26, 2021 · 3 years ago
  As a representative from BYDFi, we believe that calculating and reporting the circulating supply of a digital asset should be done accurately and transparently. It's important to follow industry standards and best practices to ensure credibility and comparability. One recommended approach is to subtract the tokens held by the project team, locked in smart contracts, or reserved for future use from the total supply. This way, only the tokens actively circulating in the market are considered part of the circulating supply. Regular updates and audits should be conducted to provide transparency and maintain trust. Additionally, it's advisable to consult reputable sources like CoinMarketCap for guidelines on calculating and reporting the circulating supply.
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