Minting
The process of creating new tokens or NFTs on a blockchain by executing a smart contract function that generates and assigns the asset.
Minting — Minting is the process of creating new tokens or NFTs on a blockchain by executing a smart contract function that generates the asset and assigns it to a wallet address. Every new token that exists on-chain was minted through a contract call at some point.
What Is Minting?
Minting refers to the on-chain creation of a new digital asset — whether a fungible token, NFT, or semi-fungible token. The process involves calling a mint function on a smart contract, which increases the total supply and assigns the newly created units to a specified wallet address.
On Ethereum, minting ERC-20 tokens calls the contract's mint function, which updates the internal balance mapping. On Solana, minting SPL tokens creates new token units through the Token Program. The transaction is permanently recorded on the blockchain.
Minting in Token Launches
For token launches, minting is the first step in bringing a new cryptocurrency to market. Projects deploy a token contract, mint the initial supply, and then distribute tokens through sales, airdrops, or liquidity pool creation. Platforms like OpenLiquid's Token Creator simplify this process by handling contract deployment and initial minting in a single step.
After minting, the token needs to be paired with a base currency (SOL, ETH, USDC) in a liquidity pool to become tradeable on DEXs.
Related Terms
Free Mint
A token or NFT distribution event where users claim assets without paying a mint price, typically covering only gas fees.
Read definition DeFi & AMMSmart Contract
Self-executing code stored on a blockchain that automatically enforces the terms of an agreement without intermediaries.
Read definitionFrequently Asked Questions
Common questions about Minting in cryptocurrency and DeFi.
Minting requires paying gas fees to execute the on-chain transaction. On Solana, minting costs are minimal (under $0.01). On Ethereum, deploying a contract and minting tokens can cost $50-$200+ in gas depending on network conditions.
Anyone can deploy a smart contract and mint tokens. No permission or approval is needed on permissionless blockchains. However, only the contract deployer or authorized addresses (set in the contract) can mint new tokens after initial deployment.
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