Stablecoin Mint, Burn, and the Reserve Invariant

Fiat deposit credits the reserve ledger and mints on-chain supply; redemption burns then debits; reconciliation keeps both ledgers equal

Stablecoin Mint, Burn, and the Reserve Invariant Fiat deposit credits the reserve ledger and mints on-chain supply; redemption burns then debits; reconciliation keeps both ledgers equal 01 / Fiat 02 / Reserve Ledger 03 / Issuance 04 / On-chain 05 / Reconcile Fiat Deposit · settled in custody · 01 / Fiat · fiat in Fiat Deposit settled in custody fiat in Reserve Ledger · backing account · 02 / Reserve Ledger · source of truth Reserve Ledger backing account source of truth Issuance Service · mint and burn · 03 / Issuance · idempotent Issuance Service mint and burn idempotent Token Contract · circulating supply · 04 / On-chain · public chain Token Contract circulating supply public chain Reconciler · supply vs reserve · 05 / Reconcile · every block Reconciler supply vs reserve every block Redemption · holder request · 03 / Issuance · fiat out Redemption holder request fiat out Attestation · proof of reserves · 05 / Reconcile · published Attestation proof of reserves published fiat credit settled backing ok credit first mint tx supply up totalSupply on-chain read signed snapshot block height redeem req burn first burn tx supply down reserve debit reverses backed reserve ledger read Legend primary data policy / PII async batch data store

Ordering Rule

  • • Mint credits the reserve before it mints on chain
  • • Burn removes tokens before any fiat leaves custody
  • • Failures leave the system over-reserved, never under

Reserve Invariant

  • • circulating_supply == backed_reserve at all times
  • • One idempotency key shared by ledger and chain writes
  • • Pending mints and burns are excluded from backing

Reconcile + Attest

  • • Read both ledgers every block, not once a day
  • • Classify each break by cause: wait, replay, or freeze
  • • Attest at a fixed block height so anyone can verify

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