BAT Supply Unlimited or Capped? - Common Misconceptions - Part 2
BAT

BAT Supply Unlimited or Capped? - Common Misconceptions - Part 2

By Bragato18 | Bragato18 | 17 May 2020


I was always under the impression that the supply of Basic Attention Tokens was capped at 1.5 Billion. But lately I have read that the supply of Basic Attention Tokens is unlimited and Brave can create new tokens at will. Today I saw it again in a post:

Why is BAT is the best cryptocurrency for most people

Its market cap is high, but not so high that 30% moves in a day are rare. It's number of tokens are unlimited, but the company behind the token buys back some of them occasionally.

How did I get it so wrong? Had they somehow changed the rules (code) and I missed the announcement? Time to put on my Sherlock Hat and do some good old detective work (aka DYOR).

Just For The Record

I had already posted:

BAT, Mass Adoption and Related Matters - An Open Discussion

Where the it was mentioned about the Basic Attention Token ICO

Tokens for Sale - 1 Billion, raising $24 million in Ethereum which was 133,333 ETH @ $180.00 per ETH.

User Growth Pool - 300 Million (free ones).

BAT Development Pool - 200 Million (free ones).

The Basic Attention Token White Paper was covered in the post:

Have You Read the Basic Attention Token White Paper?

While I had read the White Paper, the post did not mention the ICO.

And some common misconceptions were discussed in:

BAT, Brave Rewards and Brave Browser - Common Misconceptions - Part 1

After some positive feedback. I always meant to make it a series but with so many other ideas floating around in my head, it is only now that we have Part 2.

What a DuckDuckGo Search Revealed

The search revealed that some-one else had asked the same question 9 days ago on Reddit. They wanted to know the "Max supply of Basic Attention Token".

Brave

Posted on Reddit 9 days ago by NatoraAshoray

Brave

And the prompt reply by bat-chriscat from BAT team the same day

BAT

I have added the following links in resources if you want to read them fully. 

  • Introduction Guide to BAT
  • Basic Attention Token White Paper
  • BAT smart contract code

Unlimited or Capped?

Definitely Capped!!!

Unless some-one changes the Basic Attention Token smart contract code, the supply is capped at 1.5 Billion tokens. And I would most likely get to hear about on the Twitterverse, if they decided to pull a stunt like that. Not to mention the market value of the BAT would head south.

Conclusions

  • don't always believe everything you read. A lot of media articles are copies of other articles of copies of other articles.......
  • Chinese whispers quickly distort the original
  • do your own research.
  • try and confirm from 3 sources.

Next Question

Where did this idea come from?

Not sure but I think a clue could be in the later part of the above quote

.....but the company behind the token buys back some of them occasionally.

It is possible that some-one misread the original media announcement by Brave, to mean that Brave was doing a "stock buy-back". Hence soaking up excess supply to maintain the market value. The opposite would be to lower the market value by minting more Basic Attention Token. I know it doesn't make sense but thats the best I could come up with at short notice.

The End.

I never know where it will end up when I get an inspiration to write something. But I just go with it and see what transpires.  I can waffle on a bit when I get on a roll.
You have done well, if you made it to the end.
I hope you found this post interesting and informative. I always enjoy doing the research and putting it all together.
Feel free to post comments, as getting feedback is how we learn. All feedback is greatly appreciated.
Or a thumbs up if you enjoyed your read.
Stay Safe

 

If you are not already using the Brave Browser on your laptop or mobile devices. You can download and install the Brave Browser by using our referral link. And you can start earning more BAT.
https://brave.com/kay661 

 

Update May 18

Thanks to  @nikkel5

for the link to the Brave buy-back article.

https://coinfomania.com/brave-buys-back-over-380000-bat-tokens-from-supply/


Bragato18
Bragato18

I am a sun sea and sand person, makes chocolate, grows organic vegetables, rides a Vespa and collects crypto. https://twitter.com/Bragato18CCS


Bragato18
Bragato18

Bought our 1st pieces of BTC, July 2017. The process was daunting and confusing. Could easily given up & put it in the too hard basket or have fallen victim to one of the many scams or pitfalls. Grateful to a friend of my son's, who had been in this space for awhile, giving me some good advice & steering me in the right direction. That experience has helped shape my desire to share what I learn. Also always had a morbid fascination with Snake Oil Salesman & their sales pitch; Bitconnect, USI Tech..

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