# Adjusted Free Float Supply Methodology

Free Float Supply can overcome the imbalance between supply and demand by reducing the weight of a constituent to account for supply that is either restricted, not freely available for purchase or increasingly unlikely to be available to the market. Free float adjustment excludes native units of a cryptoasset that are closely held by controlling groups, government agencies, directors, founders and founder family holdings, investors with vesting schedules and long-term strategic investors (defined herein as holders of tokens that have not moved on-chain in over 5 years).

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To the maximum extent possible, Coin Metrics has created a free float adjustment methodology that can be applied consistently, uniformly and objectively across all of our indexes.

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