Seigniorage
The profit earned by issuing currency — the difference between the face value of money and the cost to produce it. In algorithmic stablecoins, seigniorage mechanisms attempt to maintain the peg by expanding and contracting supply.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
ZK-SNARK
Zero-Knowledge Succinct Non-Interactive Argument of Knowledge — a cryptographic proof that lets one party prove they know a piece of information without revealing the information itself. ZK-SNARKs power privacy and scaling solutions like zk-rollups.
Flippening
A hypothetical event in which Ethereum's market capitalization surpasses Bitcoin's, making Ethereum the largest cryptocurrency by market cap. The term is used by Ethereum supporters to describe this potential milestone.
Dollar Cost Averaging
An investment strategy where you invest a fixed dollar amount into an asset at regular intervals, regardless of its price. This approach reduces the emotional impact of market swings and lowers the average cost over time. Often abbreviated as DCA.
Merkle Tree
A data structure used in blockchains where every transaction is hashed, and those hashes are combined into pairs and hashed again until a single root hash — the Merkle Root — is produced. This allows efficient and secure verification of any transaction in a block.
FOMO
Fear Of Missing Out. The anxiety that an exciting opportunity is being missed, often leading to impulsive investment decisions based on hype rather than analysis.