Unauthorized Token Minting

Definition ∞ Unauthorized token minting is the illicit creation of new digital tokens without proper authorization or adherence to protocol rules. This malicious act typically results from exploiting vulnerabilities in smart contracts or governance mechanisms. Such an event can lead to hyperinflation of a token’s supply, devaluing existing assets and causing significant financial losses for holders. It represents a severe security breach within a blockchain ecosystem.
Context ∞ Reports of unauthorized token minting are a major concern in crypto security news, often signaling critical flaws in a project’s design or implementation. These incidents undermine trust in decentralized applications and highlight the need for rigorous smart contract audits. The consequences can include immediate price crashes and widespread loss of confidence.