Definition ∞ An infinite supply attack is a vulnerability where a malicious actor can mint an unlimited quantity of a digital asset, leading to hyperinflation and value collapse. This attack typically targets flaws in a smart contract’s token minting mechanism or its underlying economic logic, allowing an attacker to bypass supply limits. The unauthorized creation of new tokens dilutes the value of existing assets held by legitimate users, effectively destroying the token’s market price. Such an exploit represents a catastrophic failure of a digital asset’s monetary policy.
Context ∞ The threat of an infinite supply attack remains a severe concern for token projects and decentralized autonomous organizations, highlighting the absolute necessity of robust smart contract security. A primary discussion point centers on the critical importance of comprehensive audits for token contracts and the implementation of strong access controls for minting functions. Continuous vigilance and prompt patching of identified vulnerabilities are crucial to prevent such devastating economic exploits.