Definition ∞ A token minting exploit is a security vulnerability that allows unauthorized creation of new tokens beyond the intended supply limits of a digital asset. This flaw typically resides within the smart contract code governing the token’s issuance mechanism. Successful exploitation can lead to hyperinflation of the token supply, devaluing existing holdings and severely disrupting the associated decentralized economy. It represents a critical integrity breach.
Context ∞ News reports frequently cover token minting exploits when a project’s token supply is unexpectedly inflated, causing a sudden price collapse and significant losses for investors. These incidents underscore the absolute necessity of rigorous smart contract audits and robust economic design for new digital assets. Preventing such exploits is paramount for maintaining the credibility and stability of the cryptocurrency market.
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