Custom Minting
Token Creation, Smart Contract Feature
Custom Minting refers to the programmable ability within smart contracts to create (ÔÇ£mintÔÇØ) new tokens or assets, either automatically based on set conditions or manually by an authorized address. Custom minting is core to most fungible and non-fungible token standards (like ERC-20, ERC-721, or XLS-20), enabling projects to issue, distribute, or burn tokens as needed. Rules for mintingÔÇösuch as supply caps, access controls, or on-chain governanceÔÇöare coded directly into the contract.
Use Case: A stablecoin project mints new $USDC tokens whenever users deposit dollars, or an NFT collection mints new artworks as collectors claim them, all governed by contract rules.
Key Concepts:
- Smart Contract Token ÔÇö The programmable assets that enable custom minting and burning.
- Token Standard ÔÇö Protocols (like ERC-20, ERC-721, XLS-20) that define minting and burning logic.
- Fungibility ÔÇö Custom minting applies to both fungible and non-fungible tokens.
- Metadata ÔÇö Minted NFTs often include custom metadata for uniqueness and provenance.
Summary: Custom minting brings flexibility and programmability to digital assets, letting projects and creators control supply, distribution, and uniqueness of tokens in Web3 ecosystems.
| Aspect | With Custom Minting | Without Custom Minting |
|---|---|---|
| Token Supply | DynamicÔÇöcan increase or decrease | Fixed at launch |
| Control Mechanism | On-chain rules and permissions | Protocol-level only |
| Examples | USDC, NFT collections, governance tokens | Bitcoin, capped-supply tokens |
| Utility | Flexible, adaptive supply | Hard-capped, non-programmable |