An emission curve in cryptocurrency indicates the rate at which new coins are created and released into circulation. It represents the schedule or formula governing the supply of the digital currency over time. The emission curve typically follows a predetermined pattern established during the creation of the cryptocurrency.
The emission curve plays a significant role in determining the overall supply of the cryptocurrency in circulation. It directly impacts factors such as inflation, scarcity, and the overall economic model of the digital asset. By understanding the emission curve, investors and users can anticipate how the value of the cryptocurrency may evolve in the future.
Different cryptocurrencies may have varying emission curves, depending on the specific protocol and consensus mechanism governing their supply. Some cryptocurrencies may have a fixed supply cap, while others may have a dynamic issuance rate that adjusts based on certain parameters. Overall, the emission curve is a key component in understanding the monetary policy of a cryptocurrency.
