PoR and Mint Budget

Token Supply

The total XAGm token supply will change in the following two circumstances: (1) addition/removal of reserves where the corresponding amounts of XAGm tokens will be minted or burned and (2) reconcileSupply to create the tokens corresponding to the fee amounts and sent to the feeCollector address.

Mint Budget

XAGm tokens are minted and redeemed on-chain while ensuring that the sum of totalSupply on Ethereum and other future blockchains does not exceed the reserve amount divided by the latest ozPerToken value.

After subtracting the sum of totalSupply on all chains from the total permissible token amount calculated by totalReserves divided by the prevailing ozPerToken value, the resulting difference is called the Global Mint Budget, which is the total amount of new XAGm that can be further minted on chain. This occurs when a new physical bar is added to the reserves inventory, prior to the minting of XAGm. Each time the reserve is increased, or XAGm is redeemed, the value of the Global Mint Budget is increased.

The mint budget allocated to each chain is called the Local Mint Budget. Whenever the reserve increases, the local mint budget on Ethereum is first increased and subsequently transferred to the destination chain’s local mint budget. When minting XAGm, the amount minted cannot exceed the local mint budget on that particular chain.