Definition ∞ Token overissuance describes the unauthorized creation or distribution of a quantity of digital tokens exceeding the amount initially stipulated by a protocol’s design or smart contract parameters. This typically stems from a critical bug in the code or a malicious exploit. It disrupts the intended supply schedule.
Context ∞ This represents a severe vulnerability that can result in hyperinflation of a token’s circulating supply, drastically devaluing existing holdings and severely damaging investor confidence. News reports frequently cover such incidents as major security exploits or economic attacks targeting a blockchain protocol.
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