What Is the Long-Term Effect of a Halving on the Total Circulating Supply of a Cryptocurrency?

The halving mechanism ensures that the issuance rate of new coins slows down over time. This creates a deflationary pressure on the coin's inflation rate.

By reducing the supply of newly mined coins, the halving contributes to a predictable, finite total supply cap. This scarcity is a core tenet of the cryptocurrency's value proposition, promoting long-term price appreciation if demand remains constant or increases.