So what happens to any unsold tokens?
Tokens are minted when ETH are sent to the smart contract, therefore unsold tokens are actually non created.
Oh wow, so they're made on a need basis only? Don't think I've seen this before.
This would really help with inflation, right?
Basically the result is as if the unsold tokens would have been burned, so less circulating supply.
Which means more value per token. Any other practical effects?
The value of the token is actually the same, whereas market cap is lower given less circulating supply.
The value of the tokens will not reduce.Take a look at this analysis Market cap = circulating supply x token price
If you have a lower circulating supply, token price is the same (you set it arbitrary during ico) whereas market cap will decrease.