A Variable Supply Token is a type of cryptocurrency where the total supply can change over time, depending on specific conditions or mechanisms. This is in contrast to fixed supply tokens, which have a predetermined maximum supply.The change in supply can happen through various methods, such as inflationary or deflationary measures. In an inflationary model, new tokens can be continuously minted or issued to incentivize participation or funding. Conversely, a deflationary approach may involve burning tokens to reduce their total supply, increasing the scarcity.Variable Supply Tokens often aim to achieve certain economic goals, such as stabilizing the token’s price or fostering adoption. They can be tied to algorithms or smart contracts that manage supply adjustments based on demand or other factors.These tokens may appeal to specific use cases, such as decentralized finance (DeFi) projects or stablecoins, where maintaining a certain value or utility is essential. As a result, they can provide flexibility and adaptability in rapidly changing market conditions.