Float Adjustment

Flock's crypto terminology provides essential definitions and explanations of key concepts in cryptocurrency, enabling users to understand the space easily.

Float adjustment refers to the changes made to the circulating supply of a cryptocurrency. This process is intended to manage the asset’s value and maintain market stability.When a project needs to increase or decrease its float, it can do so by adjusting the total amount of coins in circulation. Increasing the float might involve minting new coins, while decreasing it could involve burning existing coins. These adjustments can affect supply and demand dynamics, influencing the price of the cryptocurrency.Float adjustments can be part of a planned monetary policy or respond to market conditions. For example, during a significant price drop, reducing the float might help support the price. Conversely, increasing the float could be used to fund development or incentivize users. Overall, float adjustments are crucial for maintaining the health of a cryptocurrency project, ensuring that it remains adaptable to market changes and user needs.

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