Chainlink community members advocate for Paxos to adopt Chainlink’s PoR validation to prevent potential “infinite issuance attacks”

Chainlink community member Zach Rynes wrote on X, "Paxos accidentally minted *300 trillion* of unbacked PYUSD tokens. The funds are now safe, it was just an operational error, the excess supply has been destroyed, and the 1:1 peg is stable. But it is a good example of how Chainlink Proof of Reserves could have prevented this entire PR nightmare. Specifically, asset issuers can integrate Chainlink Proof of Reserve into the minting function of their token contract as a validation check, which prevents the issuance of additional tokens unless Chainlink PoR first verifies that sufficient off-chain reserves are available to maintain 100% collateralization. This prevents an 'infinite minting attack,' where a large number of unbacked tokens are minted, putting all listed tokens and the market supporting them at risk."