Altcoins Talks - Cryptocurrency Forum

Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Rakhee on March 07, 2019, 11:51:20 AM

Title: Meaning of Stable Coin Minting and Redemption
Post by: Rakhee on March 07, 2019, 11:51:20 AM

I am confused if Stable Coin minting means creating new coins or purchasing coins ?
Does coin redemption means coin selling ?

Regards

Title: Re: Meaning of Stable Coin Minting and Redemption
Post by: Peter90 on July 17, 2019, 02:17:40 PM

Minting means creating new coins.
Redemption is the opposite of minting: through redemption coins disappear.

Stablecoins get redeemed by getting exchanged for what they are backed with.
If they are backed by US dollars, redemption means exchanging them for US dollars.
If they are backed by oil, redemption means exchanging them for oil.

 :)