Emission

Emission in the context of cryptocurrencies refers to the process of creating and releasing new tokens according to the protocols of a given digital currency written in software. This is a key element that affects the overall supply of a given cryptocurrency on the market. The issuance process is strictly regulated and controlled by the rules and algorithms implemented in the blockchain of a given cryptocurrency.
For many cryptocurrencies, token issuance can have different mechanisms, the most popular of which are “Proof of Work” (PoW) and “Proof of Stake” (PoS). In the PoW system, new tokens are created by solving complex mathematical problems, which is called “digging” (mining). In the PoS system, new tokens are created based on the number of tokens already held by the investor and the length of time they are held in the portfolio.
Limiting the supply of cryptocurrency is also an important aspect of emission. Many cryptocurrency projects impose upper limits on the total number of tokens available, creating what is known as a supply cap. This limitation is intended to prevent excessive inflation and maintain stability in the value of a given cryptocurrency. The issuance process is, therefore, closely linked to the economics of a given cryptocurrency, affecting its value, availability on the market and attractiveness to potential investors.
Investors and developers follow the issuance process because it has a significant impact on the dynamics of the cryptocurrency market. Understanding how issuance works can be crucial in making investment decisions and forecasting long-term price trends.