Cardano monetary policy-please explain

Hello, this is my first post. I am trying to understand Cardano’s monetary policy from here:

In my understanding this would mean that becuase of the way the Japanese understand and use money, Cardano’s circulating supply in practical terms is actually 2.5 million and not 25bn? Thanks

1 ADA = 1,000,000 Lovelaces
1 Lovelace = 1/1,000,000 Ada
Ada has six decimal places.
1.000000 = 1 ADA
0.000001 = 1 Lovelace
In terms of money units, there are two points of consideration. Firstly in Japan, yen amounts are much larger, where 10,000 yen is similar to a 100 dollar bill. Factoring this into unit calculations, the amount changes from 25 billion Ada to 250 million. Remember that a unit of Ada is equal to a million Lovelaces (the smallest unit), and after factoring in this adjustment, equates to a total of 2.5 million. Secondly, Ada has six digits from the decimal point, rather than eight digits for Bitcoin.

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Had this talk before, and no, even if many are confused…

The total supply now is 31B ADA (cant remember the max cap). Nothing less, nothing more. 1 ADA is the Unit. It doesn’t matter, how many parts it can be broken into, it does not expand the supply, they are just representive fractions of 1 ADA.

It works the same way in reverse.

I mean, you can say that all ADA is just 1 ALL-ADA, and just each own a representation/fraction of 1 ALL-ADA… Sure you can say that, Its semantics, but the supply remains the same, 1 ADA is the whole unit and there is 45B ADA Max. … Just semantics…

Yeah I read those topics but I didn’t see the answer I was looking for. If the circulating supply were just 25bn why would cardano then write this into their monetary policy saying that it’s actually 2.5 million? Why not just say it’s 25bn and leave it at that?

If I were in Japan and used to using yen then perhaps I would look at the circulation supply 25bn and see that it’s 2.5m.

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Yes, saying there is 25B (or whatever it is) ADA is a much better representation, I agree, the other confuses people… and there is no reason for it.

and as Its stated that 25B ada can somehow transfer into 250 Million or 2.5M ADA is completely non-sense… Thats kinda what most people would read from how Its written…

What they are talking about are units and denominations, it is has nothing to do with supply, but I agree, it can be confusing to read it because of how Its written…

Specially that part… The 250M is no longer (a) ADA…

So either the person that wrote this is confused themselves, or they wrote it as to be implicit…


I asked the Cardano foundation about this and they said.
The facts are correct about the division of Ada - there are 45bn maximum Ada. There is no read-across with yen or any other currency. Cardano has its own division, like Bitcoin and other cryptos, and can’t be compared.

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