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description: Details about stablecoin issuing mechanism
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# Stablecoin Network Data

## Stablecoin Issuing Mechanism

Each individual Stablecoin is created by an issuing company and each of these companies operates with a different issue mechanism. There are many of these but the two most common are as follows.

**Example 1**

![](https://3443265903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MBHQ44vVRUAbLIaMwGN%2F-MZq7zr2CFHI27dlEK-8%2F-MZq88MSKnr8QLm0ezZJ%2Fimage.png?alt=media\&token=71d7194c-fcef-450e-9867-07ec5b8a960e)

Before providing clients with the granting address, the issuing company holds a treasury address. Through the contract, the tokens are minted and held in the treasury address. Once the client sends fiat currency, the clients' tokens are moved from the treasury address to the client address and the tokens are listed as being issued. Conversely, when redeeming tokens for fiat, the tokens are sent to the treasury address and redeemed. This won't be reflected in the supply unless these tokens are burned using a contract by the issuing company. The circulating supply is calculated as tokens that have been issued to clients, ignoring the supply held in the issuing company wallets.



**Example 2**

![](https://3443265903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MBHQ44vVRUAbLIaMwGN%2F-MZq7zr2CFHI27dlEK-8%2F-MZq8KYOvG3TDe_cco_0%2Fimage.png?alt=media\&token=4cbeca8f-4b6e-436b-a0d1-ff2863739546)

In this method, there is no separate treasury address. After confirming the deposit of fiat, tokens are minted from the contract address and delivered directly to the client's address. Minting and issuance occur simultaneously. When clients redeem tokens, the burn and redemption also are simultaneous. This means that with this method, total supply and circulating supply will be the same. There are various methods for Stablecoin issuance, and we calculated supply and locate significant transactions. based upon these types of factors. In the future, mint/issue/burn/redeem will be added to our available metrics and will be defined as listed below.

| Term   | Definition                                                                                                                                                    |
| ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Mint   | Mint is a creation of new tokens that add to the supply. When tokens are minted, the total supply will increase.                                              |
| Issue  | The Issue is when tokens are delivered to clients after the deposit of fiat has been confirmed. When tokens are issued, the circulating supply will increase. |
| Burn   | Burn is a revocation of currently existing tokens that results in a decreased supply. The opposite of Mint.                                                   |
| Redeem | Redeem is an exchange of tokens for deposited fiat that results in a decrease in the circulating supply. The opposite of Issue.                               |
