Infinite Minting

Definition ∞ Infinite minting refers to a characteristic of some digital assets or tokens where there is no predetermined upper limit on the total supply that can be created. This means new units can be generated indefinitely, often controlled by a protocol or a central authority. Such a supply mechanism can lead to inflationary pressures, potentially diluting the value of existing tokens over time. This contrasts with assets having a fixed or capped supply.
Context ∞ Discussions surrounding infinite minting frequently focus on its implications for asset valuation and economic stability, particularly for stablecoins or tokens used in governance models. Critics often highlight the potential for uncontrolled inflation, while proponents argue it offers flexibility for protocol adjustments or maintaining a peg. The governance mechanisms controlling minting remain a critical area of scrutiny for investors and analysts.