Token supply refers to the total number of tokens created for a cryptocurrency or blockchain project. It is typically divided into several categories. The total supply includes all tokens that exist, including those currently in circulation and those that are locked or reserved. The circulating supply is the portion of the total supply that is actively available and being traded in the market, excluding any tokens that are locked or reserved. The max supply is the upper limit of tokens that will ever be created, which helps control scarcity and can impact the token’s value. This division helps manage the token's availability, its economic impact, and its perceived value over time.

In a token allocation, various parties receive different portions of the total tokens based on their roles and contributions to the project. Typically, the founders and team are allocated tokens as compensation and incentive for their work in building and maintaining the project. Early investors receive tokens in return for their financial support during the early stages, often at a discounted rate. The community and users get tokens to encourage adoption and engagement, which may include rewards for participating in the network or contributing to its growth. Advisors and partners are allocated tokens as compensation for their expertise or strategic support. Additionally, tokens are often set aside in reserves and ecosystem funds to support future development, marketing, or other needs. Lastly, public sale participants acquire tokens through events like ICOs (Initial Coin Offerings) or IEOs (Initial Exchange Offerings), where they invest at a set price.

TGE, or Token Generation Event, is the process where a blockchain project creates and issues its tokens. During a TGE, the project generates the tokens and distributes them to investors, team members, or the community, often as part of an Initial Coin Offering (ICO) or similar fundraising event. This marks the official release of the tokens into the market.

The purpose of a presale is to offer tokens to early investors before they are available to the general public. This helps raise initial funding for the project and can generate early interest and support. Investors often receive tokens at a lower price during the presale, providing an incentive for early participation.

A public sale is when a project offers its tokens to the general public for purchase, typically after private and presale rounds. This allows anyone to buy the tokens at a set price, usually through events like an Initial Coin Offering (ICO) or Initial Exchange Offering (IEO). It's a way for the project to raise funds and increase the distribution and accessibility of its tokens.

The soft cap is the minimum amount of funds a project aims to raise to proceed with its plans. If this amount isn’t reached, the project may refund investors and reconsider its strategy. The hard cap is the maximum amount of funds the project will accept. Once the hard cap is reached, no additional funds are taken, and the fundraising period ends.

The purpose of an ICO (Initial Coin Offering) is to raise funds for a new cryptocurrency or blockchain project. During an ICO, the project sells its tokens to early investors, usually in exchange for established cryptocurrencies like Bitcoin or Ethereum. This allows the project to secure the capital needed for development and launch, while giving investors the opportunity to buy tokens at an early stage, often at a lower price.

The difference between Market Cap and Fully Diluted Valuation (FDV) lies in how they measure the value of a cryptocurrency or token. - Market Cap (Market Capitalization): This is calculated by multiplying the current price of a token by its circulating supply. It represents the total value of the tokens that are currently available and being traded in the market. - FDV (Fully Diluted Valuation): This is calculated by multiplying the current price of a token by its total possible supply, including all tokens that could exist in the future. FDV represents the total potential value of a cryptocurrency if all possible tokens were in circulation. In essence, Market Cap reflects the value based on existing tokens, while FDV shows what the value could be if all future tokens were issued.

Token inflation refers to the increase in the total supply of tokens over time within a cryptocurrency or blockchain project. This occurs when new tokens are created and added to the circulating supply. Token inflation can happen through mechanisms such as mining rewards, staking rewards, or scheduled token releases. While it can incentivize participation and support network security, excessive inflation can decrease the value of existing tokens if the supply grows faster than demand.

In the context of cryptocurrencies, deflation occurs when the supply of tokens decreases over time, or when the rate of new token issuance is lower than the demand for the tokens. This can happen through mechanisms such as token burning, where tokens are permanently removed from circulation, or by limiting the creation of new tokens. Deflation can increase the value of each remaining token, as fewer tokens are available to meet demand.