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Minting

Creating new tokens, either by protocol rule such as block rewards, or by a contract function someone controls.

Minting is the opposite of a token-burn. Legitimate minting follows published rules: staking rewards, block-rewards, or issuing a stablecoin against deposited collateral.

Discretionary minting is a risk to check on every token you trade. If an owner address can call mint without limit, your holding can be diluted arbitrarily, and several "hacks" have simply been an owner minting and selling.

Verification is concrete: read the contract on a block-explorer, look for mint functions and who can call them, and check whether ownership is renounced or sits behind a timelock and multisig-wallet.

Related: token-burn, admin-key-risk, erc-20, timelock

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Payoff of a long call at expiryA flat loss equal to the premium below the strike, turning upward at 45 degrees above it.Profit / loss per share08595115125Strike 105Max loss 3 — the premium paidBreakeven 108Profit keeps growingUnderlying price at expiry
Buying a call: payoff at expiry. A 105-strike call bought for 3 loses that whole 3 if the price finishes at or below 105, breaks even at 108, then gains a dollar for every dollar higher. The loss is capped at the premium; the upside is not capped.

Educational only, not advice. Spotted an error? Post in Site Feedback.