1. Minting
Minting refers to the creation of new tokens and their addition to the total supply.
For example, on proof-of-stake blockchains like Ethereum 2.0, validators receive newly minted ETH as a reward for confirming transactions.
2. Burning
Burning permanently removes tokens from circulation, reducing the total supply and often boosting scarcity.
Binance Coin (BNB) conducts quarterly burns by sending millions of tokens to an address that no one controls, steadily decreasing its supply.
3. Staking
Staking involves locking up tokens to help secure the network and earn rewards in return.
On Cardano, for instance, you can stake ADA in a pool. In exchange for locking your tokens, you receive a share of the network’s transaction fees as yield.
4. Airdrop
An airdrop distributes free tokens to users, typically to build community engagement or reward early adopters.
Uniswap launched its UNI governance token with an airdrop of 400 UNI to every wallet that had used the protocol before a certain date.
5. Vesting
Vesting gradually unlocks tokens over a defined schedule to align long-term incentives for teams, investors, or partners.
A new project might allocate 20% of its tokens to the development team but release only 5% every quarter over a year, ensuring sustained commitment.