Technical Definition

Mint Function

A mint function creates new units of a token and increases its circulating or total supply according to the token's rules.

By Crypto University Editorial
ERC-20SPL TokenToken Supply

✦ Key Insight

If someone can create unlimited new tokens, existing holders may face dilution, price pressure, or security risk.

✕ Common Misconceptions

Do not assume a fixed current supply means future supply is fixed. Check who controls minting and whether a cap exists.

Detailed Explanation

Many token contracts include code that can issue additional tokens. Access may be unrestricted, permanently disabled, controlled by an owner, governed by a multisig, or limited by protocol rules.

In Practice

“A stablecoin issuer mints additional tokens after receiving eligible reserve assets from an authorized customer.”

Dig Deeper

SPL Token

An SPL token is a token created and managed using Solana's token-program infrastructure.

Holder Concentration

Holder concentration measures how much of a token's supply is controlled by a relatively small number of addresses or entities.

ERC-20

ERC-20 is the widely used Ethereum standard that defines a common interface for fungible tokens.

Ownership Renouncement

Ownership renouncement is an on-chain action that removes the designated owner from a smart contract when the contract's ownership system supports that action.