⚖️Minting & Burning Mechanism

Controlled Supply and DUEL Token Mechanics

Token Minting and Burning Mechanism

In Duelyst Vanguard, the DUEL token operates with a sophisticated minting and burning mechanism, designed to ensure a controlled and transparent token supply. This mechanism involves two distinct tokens: DUEL and xDUEL, each serving a specific function within the ecosystem.

Dual Token Functionality

1. DUEL Token: The primary token used for staking and other transactions within the Duelyst Vanguard ecosystem.

2. xDUEL Token: A representation of staked DUEL tokens, issued as a claim on the staked DUEL and used to track staking positions.

The following equation encapsulates the fundamental mechanisms of minting, burning, and controlling the supply of DUEL tokens within the Duelyst Vanguard ecosystem.

$$\begin{equation} \begin{aligned} & \textbf{\small Staking DUEL Tokens:} \\ & \text{\small When staking } D_{\text{staked}} \text{ DUEL tokens:} \\ & \text{\small Mint } xD_{\text{minted}} \text{ tokens such that} \quad xD_{\text{minted}} = D_{\text{staked}} \\ & \text{\small Burn } D_{\text{staked}} \text{ DUEL tokens:} \quad D_{\text{burned}} = D_{\text{staked}} \\ \\ & \textbf{\small Unstaking DUEL Tokens:} \\ & \text{\small When unstaking } xD_{\text{unstaked}} \text{ tokens:} \\ & \text{\small Burn } xD_{\text{unstaked}} \text{ tokens:} \quad xD_{\text{burned}} = xD_{\text{unstaked}} \\ & \text{\small Mint } D_{\text{unstaked}} \text{ DUEL tokens:} \quad D_{\text{minted}} = D_{\text{unstaked}} \\ \\ & \textbf{\small Supply Control:} \\ & \text{\small The total supply of } DUEL \text{ tokens is controlled by:} \\ & \text{\small Total } DUEL \text{ supply:} \\ & \mathcal{D}_{\text{total}} = \mathcal{D}_{\text{initial}} - D_{\text{staked}} + D_{\text{unstaked}} \\ & \text{\small where} \quad \mathcal{D}_{\text{total}} \leq \mathcal{D}_{\text{max}} \text{ with} \\ & \mathcal{D}_{\text{max}} = \text{\Large 1{,}000{,}000{,}000} \end{aligned} \end{equation}$$

Minting and Burning Process

Staking DUEL Tokens:

• When a user stakes DUEL tokens, they are converted into xDUEL tokens. This process involves:

  • Minting xDUEL Tokens: A corresponding amount of xDUEL tokens is minted, representing the staked DUEL.

$$Minted xDUEL=Staked DUEL$$

• Burning DUEL Tokens: The staked DUEL tokens are burned, effectively reducing the circulating supply of DUEL tokens.

$$Burned DUEL=Staked DUEL$$

Unstaking DUEL Tokens:

• When a user decides to unstake xDUEL tokens, the following occurs:

  • Burning xDUEL Tokens: The xDUEL tokens are burned, reflecting the withdrawal of staked DUEL.

$$Burned xDUEL=Unstaked DUEL$$

• Minting DUEL Tokens: The equivalent amount of DUEL tokens is minted back into circulation, restoring the original tokens to the user.

$$Minted DUEL=Unstaked DUEL$$

Supply Control and Transparency

The minting and burning mechanism operates within a strict maximum supply cap of 1,000,000,000 DUEL tokens. This cap ensures that the total number of DUEL tokens in existence never exceeds this limit, regardless of the staking or unstaking activities. Here’s how the system maintains this control:

• Fixed Maximum Supply: The total supply of DUEL tokens is capped at 1 billion. There can never be more than 1 billion DUEL tokens in circulation at any given time.

• Token Equilibrium: The minting of xDUEL tokens and burning of DUEL tokens occur in tandem. For every DUEL token burned, an equivalent xDUEL token is minted, and vice versa. This balanced approach prevents inflation and maintains the stability of the token economy.

By implementing this minting and burning process, Duelyst Vanguard ensures a stable token economy that aligns with the total supply cap, preventing any potential concerns regarding excessive token circulation. This mechanism not only provides transparency but also reinforces the integrity and sustainability of the Duelyst Vanguard ecosystem.

This systematic approach guarantees that the number of DUEL tokens remains within the established limit, thereby safeguarding against inflation and maintaining a robust and transparent economic model for our users.