Token Inflation

Definition ∞ Token inflation denotes an increase in the total circulating supply of a specific cryptocurrency or digital token over a period, typically through newly created units. This process is often integrated into a protocol’s design to incentivize network participation, compensate validators, or finance ecosystem development. It significantly impacts the token’s scarcity and value dynamics.
Context ∞ Token inflation is a common topic in crypto news, particularly when analyzing a project’s tokenomics, staking rewards, or long-term economic model. Debates frequently center on appropriate inflation rates, their effect on existing investor holdings, and the balance between network security and sustainability versus potential value dilution for current token holders.

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→Code Audit Failure

→Liquid Staking Tokens

→DeFi

Legacy DeFi Pool Drained Exploiting Infinite Token Minting Flaw

A critical flaw in a custom stable-swap contract allowed an attacker to mint near-infinite yETH, bypassing core pool solvency checks.

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→Financial Primitive

→Token Inflation

→Legacy Contract

Legacy Token Contract Flaw Enables Nine Million Dollar Liquidity Pool Drain

An infinite mint vulnerability in a retired token contract was leveraged to siphon assets from linked liquidity pools.

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→Pool Drain

→DeFi Security

→Synthetic Asset

Legacy Staking Pool Exploited via Synthetic Token Inflation Logic

A flaw in the custom stableswap pool's token accounting allowed the attacker to mint unlimited synthetic assets, draining $9M in liquid staking collateral.

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→Smart Contract Vulnerability

→Token Inflation

→Asset Recovery

Memecoin Launchpad Drained Exploiting Thin Liquidity Pool Manipulation

The exploitation of low-liquidity pools via self-trading and token inflation confirms that insufficient invariant checks enable catastrophic price oracle failure.

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→Supply Shock

→Smart Contract Vulnerability

→Web3 Social

UXLINK Multi-Signature Wallet Compromised, $11.3 Million Drained

A delegate call vulnerability in UXLINK's multi-signature wallet granted an attacker administrative control, enabling unauthorized asset transfers and unlimited token minting.