Definition ∞ Recursive minting is the process of creating new tokens where the newly minted tokens can themselves be used to mint further tokens. This refers to a mechanism where the output of a token minting operation can serve as an input or collateral for subsequent minting processes. This potentially creates a cascading effect of token generation. This design can introduce complex economic dynamics and requires careful consideration of supply control.
Context ∞ Recursive minting designs are sometimes employed in novel token economic models or synthetic asset protocols, offering mechanisms for capital efficiency or layered asset creation. However, news and analysis often scrutinize these systems for potential risks of hyperinflation or economic instability. This is especially true if not properly constrained by robust mechanisms.
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