Curious question about tokenomics, of any DLT project. How is the max supply decided upon? Is it arbitrary, or is there a reason some projects start with large caps upwards of 200 billion?
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Well with 200 billion token it does not take much of a price increase on the token to vault you into the top 100 on CMC, which is one of the leading market tracking sites for cryptocurrencies.
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I think itâs arbitrary but like @Loid mentioned, a big number helps in big marketcap.
I think thereâs one more factor to it in real utility projects and that is ease of usage with/without decimals. For instance Bitcoin only had supply in the millions so today we canât even buy one Bitcoin and have to keep talking either in Decimals or give it a new name altogether (Satoshi). With a bigger token supply at least you can keep one token name and use it in non-fractions.
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Ok my question is about burning tokens , does the burning go on forever or is there a date or token amount when the burning stops ?
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That last point is the only real point: convenience.
A smaller or larger supply matters nothing in terms of market cap, because that is determined by token price * circulating supply.
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Depends on the project. In Radix, fees are burned, so theoretically it could go on forever. However, as the price increases, the fee in XRD will become less and less (to peg it at around $0.01) and so youâll burn less per transaction. But great TPS demand will of course increase the burn rate again. Itâs a dynamic and weâll have to see how it plays out 
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yes this is all about the market cap not about the price. sometimes people misinterpret the word âNothing is impossible on cryptoâ and put down a $10 investment and expect billions of dollars in profit.
@ratty I think it will burn forever and disappear, and will stop burning when no transactions occur or the network loses power to activate. this should not be separated.
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You mean my DogeShibaINUCumRocketBabboon coin wonât reach $1? 
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Maybe in this life you canât expect it, except the next life. even then if someone still considers it valuable and worthy.
I saw the development of crypto 2012 - 2022 and many of them chose the final journey to rest. 
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If it burns forever there will be no more tokens that does not make sense ! so there will be no more xrd, then there will be no more radix
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Hmmm⌠that might also be the right thought, if they are all burned and no tokens can be generated. that means it will eventually wear out and die.
but how many years will it be? maybe hundreds of generations then the token will decompose completely.
I didnât expect to live that long. 
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Well i honestly dont know , lots of projects have burns, eth has no max supply so it can burn forever , hopefully someone can answer the burn question.
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There are a couple of reasons I can think of:
- A large enough supply that if there is mass adoption of a token then you are still working in familiar/understandable numbers. No one wants to have to buy a coffee for 0.0000002 of a token as nobody really knows how much that is without doing inconvenient calculations.
2.âUnit Biasâ - People buy Cardano or Doge because it is âcheaperâ than Bitcoin. This is obviously makes no sense, but lots of âretailâ people do think this way and it can have a big impact on how many people perceive your token. This is clearly why meme coins choose to have such a large supply in nearly all cases
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With regards to burning, currently there are 12 Billion tokens allocated with an additional 12 Billion spread via staking rewards over the next 40 years. Of the initial supply 2.4 Billion tokens are locked for the next 10 years for the implementation of the Radix stable token. If this does not happen in after 10 years from Olympia launch then the 2.4 Billion will be burned. This leaves 9.6 Billion tokens available, and these are inclusive of both the eXRD and the XRD tokens. As the price of the tokens increase, a simple decision by the governance vote can easily be changed via a modification to the configuration file, Then update the validator nodes to reflect the new fee amount.
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Great question. I personally have no idea how the max supply is determined. Higher prices are usually correlated with lower supplies in general. XRD has a fixed supply, right? Would it be reasonable to assume the more transactions there are, the higher the price of XRD will rise, based on the the burning via transaction fees?
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Yes very good points but can you tell me how the burning works, will tokens be burnt forever ?
True its a physiological thing with price , but all i look at is market cap and max supply.
Yes, currently transaction fees are burnt forever