Cardano has over 40 parameters. Each parameter plays a role in shaping the network’s functionality, security, economics, and performance. The max_lovelace_supply parameter is one of a few parameters that are written in stone: designed to be non-updatable. Here is what max_lovelace_supply does, and why you might care.
What is it
The most critical parameter governing most digital assets on a blockchain system is its maximum supply—the hard limit on how many units of the currency can ever exist. Cardano (ada) is no exception, with a fixed supply cap of 45,000,000,000,000,000 lovelaces (or 45 billion ada). This number will never change.
A Closer Look at the Fixed Supply
Cardano’s 45 billion ada cap was set from the network’s inception and is enforced at the protocol level. As of today, most of this supply is already in circulation, with the remainder being gradually released through staking rewards and treasury allocations. The goal is to establish monetary predictability—ensuring that no central authority or network change could arbitrarily increase the supply and dilute the value of existing holdings.
Why Is ADA’s Max Supply Non-Updatable?
The decision to make Cardano’s maximum supply immutable was deliberate. Changing the total supply of ADA would fundamentally alter the network’s economic model and trust assumptions. By ensuring that 45 billion ADA is the absolute cap, Cardano guarantees:
- Resistance to inflation—no new tokens can be arbitrarily issued.
- Economic consistency—staking rewards and treasury allocations follow a predictable pattern.
- Long-term trust—investors and developers can confidently build on the network without fear of unexpected supply changes.
Why is it a parameter at all if it is Non-Updatable?
The Non-updatable parameters are intended to be set the first very first time the network is spun up. Once initiated, they cannot be changed unless history is reset and the system starts fresh. This is useful for running simulations, exploring what-ifs, and for setting up private blockchain networks using the Cardano code.
All of the code that makes up Cardano is open-source. If someone – a university, municipality, or business – wanted to deploy all or some of Cardano’s features but didn’t want their data to be in the open on a public blockchain, they can! They are free to just take the code and spin up their own private network for their specific needs. Before initiating that new system, they would have the opportunity to set a parameter like “max_lovelace_supply” to a different number – before it becomes permanent.
Making some key functions of the system be driven by parameters even though they cannot be changed after initiation provides the ability to significantly change how the system functions in a new context without having to rewrite the underlying code.
Why you might care
The concept of finite supply cryptocurrencies is a relatively new economic model, distinct from traditional fiat systems where central banks control money issuance. Cardano aims for sustainable economic participation, balancing scarcity with staking incentives and treasury funding for continuous ecosystem growth. Whether the model will be proven successful in the long run remains to be proven.
Whether you’re considering building a blockchain business, or simply investing in the technology, Cardano offers a platform that is not only rigorously tested and meticulously tuned for efficiency, safety, and security, but also built to be easily continuously tested against future uncertainties and changing technologies.
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