GlossaryIntermediate
Hard Cap
The maximum amount of funding a token sale will accept, after which further contributions are generally rejected.
A hard cap is the maximum amount of funding a token sale is designed to accept — once reached, the sale generally closes and further contributions are rejected, regardless of continuing demand.
This is distinct from a soft cap, the minimum funding target needed for the project to proceed at all, with the hard cap instead representing the upper ceiling the sale is capped at.
Examples
- A token sale that reaches its hard cap quickly is commonly interpreted as a sign of strong demand, though high demand alone says nothing about the project's actual underlying quality.
- A hard cap limits how much total funding a single token sale can raise, regardless of how much interest the sale generates.