Definition. This chart shows the Cointime-Adjusted Inflation Rate (🔴), an economic primitive which seeks to better capture the immediate market impact of coin issuance dilution on the economically active portion of the coin supply, alongside the 🟣 Nominal Inflation Rate for comparison.

Technical. The two rates are computed as:

• Nominal Inflation Rate = diff(Circulating Supply, 1d) x 365 / Circulating Supply (🟣) — the annualized dilution of the circulating supply
• Cointime-Adjusted Inflation Rate = Nominal Inflation Rate x A2VR (🔴)

where A2VR = Liveliness / Vaultedness is the Activity-to-Vaulting Ratio.

Interpretation. The cointime-adjusted variant considers new issuance to most immediately dilute the Active Supply portion of the holder base, since this supply region better reflects coins that are economically 'active'. In effect, this scales the dilution influence of newly mined supply by the activity of the holder base. When a large share of the supply is vaulted (A2VR below 1), newly issued coins are largely absorbed into dormant holdings and the adjusted rate runs below the nominal one; when activity dominates vaulting, the adjusted rate exceeds it. The gap between the two traces therefore tracks how much of the issuance burden the economically active region actually bears.

Notes. This chart was developed within the Cointime Economics framework for Bitcoin, a joint venture between Glassnode and ARK Invest. Full details are available in two formats: an overview primer (Version I, published via ARK) and a comprehensive guide for specialists (Version II, published via Glassnode). Built from Circulating Supply and Liveliness. The A2VR primitive is charted in Activity-to-Vaulting Ratio; the scarcity counterpart is the Cointime-adjusted Stock-to-Flow Ratio, and the vaulting-side counterpart is the Vaulting Rate.