Before you deploy a token, you need to answer one big question: how does supply work? Your supply model affects your project's economics, how investors perceive your token, and what you can actually do with it down the road. Pick the wrong one and you're stuck fighting your own tokenomics instead of building on them.
Here are the three main supply types and how to pick the right one.
What is tokenomics?
Tokenomics is the economic design behind a cryptocurrency token. It covers how tokens are created, distributed, and managed over time. Supply type is the foundation of any tokenomics model because it determines whether new tokens can be minted, how many can ever exist, and what kind of scarcity (or abundance) your token has baked into it.
It's basically the monetary policy for your project. Bitcoin has a hard cap at 21 million. Ethereum technically has no cap but burns tokens to offset inflation. Your token needs its own supply logic, and that starts with choosing one of three models.
Fixed supply tokens
A fixed supply token is exactly what it sounds like: the total supply is set at deployment and never changes. Every token that will ever exist gets minted the moment you deploy the contract, and they all land in your wallet.
No minting function. No way to create more later. What you deploy is what you get.
This is the most common model for meme coins, community tokens, and anything that wants to signal scarcity from day one. When holders see a fixed supply, they know dilution is off the table. Nobody can print more tokens and tank the price.
When to use fixed supply:
- Meme coins where trust and simplicity matter most
- Store-of-value tokens that lean on scarcity
- Any situation where your community needs to trust that supply won't inflate
You can deploy a fixed supply token in minutes using the Ultimate Token Creator. Just set your initial supply, leave minting disabled, and deploy.
Capped supply tokens
Capped supply tokens give you a ceiling but not a wall. You set a maximum supply that can never be exceeded, but you don't have to mint everything upfront. You start with an initial supply and retain the ability to mint more tokens later, up to that cap.
This is the middle ground. Holders get a hard guarantee that supply will never exceed X tokens, but you keep flexibility to mint additional tokens as your project grows. Maybe you need tokens for staking rewards six months from now. Maybe you want to fund development in phases. Capped supply lets you do that without opening the door to unlimited inflation.
When to use capped supply:
- Projects with phased rollouts or milestone-based token releases
- Tokens that need staking or reward distributions over time
- Teams that want flexibility but still need to reassure holders about max supply
Capped supply works best when you're transparent about it. Your community needs to understand why minting rights exist and when you plan to use them. Publishing a minting schedule builds a lot of trust here.
Unlimited supply tokens
Unlimited supply tokens have no ceiling at all. The contract owner can mint new tokens whenever needed, with no maximum cap. This sounds scary, and honestly it can be if there's no clear reason for it.
But unlimited supply has legitimate use cases. Reward programs that distribute tokens continuously need the ability to mint on demand. Governance tokens that expand as the community grows might need unlimited supply. Inflationary models that deliberately dilute supply over time (like some stablecoin mechanisms) rely on it.
Unlimited supply makes sense for ongoing reward or incentive programs, governance tokens for growing DAOs, and utility tokens where demand drives new issuance. Basically, any project that explicitly uses inflation as a feature rather than a bug.
The trade-off is trust. Unlimited minting power means holders are relying entirely on the team's judgment. If you go this route, consider adding governance controls or timelocks so minting can't happen unilaterally.
Fixed vs Capped vs Unlimited: side-by-side comparison
| Feature | Fixed Supply | Capped Supply | Unlimited Supply |
|---|---|---|---|
| Minting After Deploy | No | Yes, up to cap | Yes, no limit |
| Max Supply | Set at deploy | Set at deploy | None |
| Best For | Meme coins, store of value | Phased projects, staking rewards | Reward programs, governance |
| Trust Signal | Highest | High (cap is verifiable) | Lowest (requires trust in team) |
| Complexity | Simplest | Moderate | Moderate to high |
Which supply type is right for your project?
Not sure? Run through this:
- You're launching a meme coin or community token and want maximum trust with minimum complexity. Go with fixed supply. Mint everything at deploy, send it to your wallet, and let the market do its thing.
- You're building a project with a roadmap that includes staking, rewards, or phased releases. Capped supply gives you room to grow without scaring off holders.
- You're creating a utility or governance token for an ongoing protocol that needs to issue tokens as the ecosystem expands. Unlimited supply makes sense, but pair it with governance controls.
- You want a deflationary mechanic where tokens get burned over time. Start with a fixed or capped supply and enable burning. Check out the Deflationary Token builder for this.
- You're doing a fair launch where 100% of supply goes into a liquidity pool. Fixed supply is the obvious pick here, and you can set it up through the Fair Launch Token creator.
How to set your token supply on CreateMyToken
Setting your supply type takes about 30 seconds in our Token Builder:
- Head to the Ultimate Token Creator and connect your wallet
- Enter your token name, symbol, and decimals
- Set your Initial Supply, this is how many tokens get minted at deploy
- If you want capped supply, enable Minting Support and set a Max Supply higher than your initial supply
- If you want unlimited supply, enable both Minting Support and Unlimited Supply
- For fixed supply, just leave minting disabled, your initial supply becomes your total supply
- Hit deploy, confirm in your wallet, and you're live
The whole process takes a couple of minutes and costs a few dollars in gas on most chains.
Frequently asked questions
Can I change my token's supply type after deployment?
No. Once your token contract is deployed, the supply model is permanent. If you deployed a fixed supply token, you can't add minting later. This is why choosing the right model upfront matters. If you're unsure, check out our FAQ page for more details on token configuration.
What's the most popular supply type for new tokens?
Fixed supply is by far the most common, especially for meme coins and community tokens. It's the simplest to understand, the easiest to deploy, and it sends the strongest trust signal to potential holders. Most tokens created through our Token Builder use fixed supply.
Does supply type affect my token's price?
Supply type doesn't directly set your price, but it heavily influences how the market perceives your token. Fixed supply tokens benefit from scarcity narratives. Unlimited supply tokens can face selling pressure if new tokens are minted aggressively. The market cares about both total supply and the rate at which new tokens enter circulation, so your supply model is a core part of how traders evaluate your project.