How to choose your token's supply, decimals, and allocation — and why these decisions shape your token's long-term value and community trust.
Supply is fixed at mint time and cannot be changed if you revoke the mint authority. Choose carefully. There is no objectively correct number — what matters is how supply interacts with price psychology.
Decimals control the smallest unit of your token. Like SOL has lamports, your token can have sub-unit precision. 6 decimals is the safe default for most DeFi use cases.
How you distribute your token supply signals your intentions to the community. Concentrating too much supply in founder wallets is the most common reason experienced traders avoid new tokens.
Market cap = circulating supply × price. FDV = total supply × price. If your FDV is 100× your market cap, it signals massive future sell pressure from unlocking tokens.
Only tokens that are freely tradeable count as circulating supply. Locked, vested, or treasury tokens are not circulating. A low circulating supply creates initial scarcity.
High velocity means tokens move quickly between wallets — often a sign of speculation, not utility. Staking and locking mechanisms reduce velocity and create price stability.
Burning tokens (sending to a dead address) permanently reduces supply. Fee burns, buyback-and-burn programs, and transaction burns are common mechanisms to create deflationary pressure.
Total supply and decimals are set permanently at mint time. If you revoke the mint authority (recommended), no additional tokens can ever be created. Plan carefully — there is no undo.