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:
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:
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:
While I had read the White Paper, the post did not mention the ICO.
And some common misconceptions were discussed in:
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".
Posted on Reddit 9 days ago by NatoraAshoray
And the prompt reply by bat-chriscat from BAT team the same day
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?
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.
- 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.
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.
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.
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Update May 18
Thanks to @nikkel5
for the link to the Brave buy-back article.