The ‘Infinite Mint Hack’ and What You Can Do About It
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We simply heard of one thing fairly horrifying.
It’s known as an ‘infinite mint assault’.
Right here’s the way it works:
You know the way some crypto initiatives have a restricted provide?
Take BTC for instance – solely 21M BTC ever have been, and ever will likely be, created.
Which is tremendous essential for the venture’s tokenomics.
(I.e. The best way an investor can gauge worth by analyzing provide and demand).
Look, we’re not builders, removed from it, however what we all know is that every time tokens are minted, someplace in a venture’s good contract code lies the precise quantity for the full provide.
However what occurs if a hacker is ready to change that quantity? What about in the event that they turned that quantity from 10M to 10B (for instance)?
Then, when minting new tokens, they’ll mint an infinite quantity.
At first it could be exhausting to inform. If the venture has vital liquidity, likelihood is the hacker will be capable to promote a number of the tokens with out being observed.
…till they’re caught.
Which can then possible tank the value of the present tokens and damage the celebration for all the good actors who invested as a result of they believed within the venture.
That is precisely what occurred some time again throughout the Paid Network hack.
The best way for corporations to beat the infinite mint hack is thru frequent good contract audits – and for buyers, it’s all the time finest to search out out when the latest good contract audit was accomplished earlier than investing closely in a venture.
Keep secure on the market!
