Mint and Burn Process
Minting Process
The minting process allows users to generate project-specific Intelligent Stablecoins within X Network, ensuring stable value and seamless integration for AI ecosystems.
User Deposit: The user initiates the minting process by depositing the AI project’s native token into a designated minting contract.
Oracle Price Check: A decentralized oracle fetches the latest market price of the native token, ensuring that the minting reflects current, accurate values.
Stablecoin Calculation: The system calculates the equivalent stablecoin amount, pegged to $1, based on the native token’s market value.
Cross-Chain Messaging: A secure cross-chain message relays the minting request to X Network, establishing communication between the blockchain networks involved.
Stablecoin Minting: X Network’s infrastructure mints the calculated amount of the Intelligent Stablecoin which the user can then use within the ecosystem for payments and transactions.
Burning Process
The burning process enables users to convert their Intelligent Stablecoins back to the native token, maintaining stability and liquidity within the ecosystem.
User Initiates Burn: The user begins the burn process by depositing the AI ecosystem’s stablecoin into a burn contract on X Network.
Oracle Price Check: The decentralized oracle updates the latest price of the native token to ensure accurate conversion rates.
Stablecoin Burn: The specified stablecoin amount is burned on X Network, effectively reducing the supply of the stablecoin and reinforcing its stable value.
Cross-Chain Messaging: A secure cross-chain message is sent to the native blockchain (e.g., Arbitrum) to mint the corresponding amount of the native token.
Native Token Minting: The equivalent amount of the native token is minted based on the updated market value and sent back to the user, completing the intelligent burn process and preserving value within the ecosystem.
Through this mint-burn mechanism, X Network ensures a balanced and stable currency infrastructure that meets the demands of AI ecosystems, preserving value and optimizing liquidity for each project.
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