<p>Without repeating what's <a href="https://docs.cardano.org/explore-cardano/monetary-policy" rel="nofollow noreferrer">in the documentation already</a> , monetary expansion refers to a percentage of ADA unlocked from reserves to distribute to treasury and stake rewards right before each epoch transition. It does not change the upper bound max-supply of ADA.</p>

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2022-06-26T02:56:00.643Z
2022-06-26T02:56:00.643Z
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<p>I have heard the term Monterrey Expansion used to talk about the ADA supply, but my understanding is that the total amount of ADA is fixed.</p>
<p>How can you have a hardcoded value for a upper bound on ADA and have an expanding supply of ADA at the same time?</p>

<ada><supply>
How To Explain Monterrey Expansion and Hard coded ADA values?
# How To Explain Monterrey Expansion and Hard coded ADA values?

(Asked by: username_0 on 2022-06-25)

I have heard the term Monterrey Expansion used to talk about the ADA supply, but my understanding is that the total amount of ADA is fixed.

How can you have a hardcoded value for a upper bound on ADA and have an expanding supply of ADA at the same time?

**Tags:** ada, supply

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## 1 answers

### Answer by username_1 on 2022-06-26. Score: 1 | Accepted answer

Without repeating what's [in the documentation already](https://docs.cardano.org/explore-cardano/monetary-policy) , monetary expansion refers to a percentage of ADA unlocked from reserves to distribute to treasury and stake rewards right before each epoch transition. It does not change the upper bound max-supply of ADA.


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