📐1.2. Supply types

Circulating	Historic	Deleted
liquid	burnt shares / 1.3	destroyed shares & directly burnt

1.2.1. Circulating supply

The circulating supply contains all CDP that exist on the blockchain.

The circulating supply can be used to:

• Display all liquid CDP which can potentially hit markets

• Track deflation or inflation

• Calculate CDP’s market capitalization (not recommended)

Several websites are tracking and comparing market capitalization of many cryptocurrencies. Some of them may subtract coins that have not moved for an x amount of time or are known to be lost or stuck. Locked coins in Decentralized Finance (DeFi) applications are mostly included in calculations. Carpe Diem Pension works a bit different, as all locked coins are burnt forever and are turned into shares. While other DeFi applications use the term Total Value Locked (TVL) to display all the value that is currently locked in the system, for Carpe Diem Pension it might be more appropriate to introduce a new term: Total Value Burnt (TVB). Carpe Diem suggests websites for measuring market capitalizations to include the TVB in their calculations.

1.2.2. Historic supply

The historic supply contains all CDP that has existed in the past and is currently denominated in shares.

To calculate the number of burnt CDP, shares are divided by the dilution factor of 1.3. Thus, the exact formula to calculate the historic supply is:

$$H = S / 1.3$$

Where H = historic supply, S = shares in the system.

The combination of circulating and historic supply can be used to:

• Calculate inflation

• Calculate CDP’s market capitalization with the TVB included

1.2.3. Deleted supply

The deleted supply contains all CDP that are directly deleted (burnt) without the creation of shares, and shares divided by 1.3 that are no longer in the system.

The deleted supply is the final layer to make calculations involving the supply.