Unauthorized Token Supply

Definition ∞ Unauthorized token supply refers to the creation or issuance of digital tokens beyond the legitimate, intended, and publicly disclosed supply schedule of a blockchain protocol. This occurs without proper authorization or through exploitation of a system vulnerability. Such an event typically dilutes the value of existing tokens and undermines the economic integrity of the asset. It constitutes a severe breach of trust.
Context ∞ The risk of unauthorized token supply is a significant concern for digital asset projects and their communities, as it directly impacts scarcity and value. Discussions frequently address the importance of rigorous smart contract audits and robust governance mechanisms to prevent such occurrences. A critical future development involves continuous monitoring of on-chain data and transparent supply management practices to assure token holders.