Token Supply % for Portfolio Asset Allocation
TLDR: Unspent now allows you to see the token supply percentage you own for each asset in your portfolio!
When it comes to portfolio management, it’s common knowledge that proper asset allocation generally means keeping an eye on the total value of each asset among the whole portfolio. For example, you could want a portfolio with 50% of Bitcoin, 20% of Ethereum, etc, and regularly rebalance it as the value of those assets changes to stay close to these percentages.
Asset allocation is a means to manage risk and reward, and while the Portfolio % method above is popular even in crypto, other methods exist.
Token supply % is another such method, which is based on the percentage of each asset’s token supply you own (the total number of tokens that exist for that asset).
As observed in this essay from Willy Woo, crypto assets are an emerging technology, and one property of emerging tech is that successful assets will generally follow a power law distribution. In other words, 20% of assets would capture 80% of the market value, while the remaining 80% of assets would capture 20% of the value. As such, allocating your portfolio according to what proportion of an asset you want to own, rather than how much it’s currently worth in your portfolio, can be a way to maximize rewards by staying invested in the winners that’d capture 80% of the market value.
Unspent is all about empowering you with information that helps you make decisions that are right for you, so the token supply % for each asset in your portfolio is another piece of information that we wanted you to have: you can now find it inside the list of all your assets!
Note: this is in no way financial advice; this is a strategy among many, one that applies to long-term investments, that you should adapt to your goals and risk tolerance.
