npub.xyz on Nostr: doesn't break bitcoins fixed supply. mints a centralized 3rd parties that hold all ...
doesn't break bitcoins fixed supply. mints a centralized 3rd parties that hold all user deposited funds (btc).
can they print as many ecash tokens as they want?
yes.
the issue is when users attempt to pull funds out, the quantity ecash != the quantity bitcoin. the mints credibility will be destroyed, and user funds essentially rugged/stolen, and likely will have a run on the mint with users all trying to transfer out.
the fix supply is never effected, but mints can theoretically use fractional reserve practices and lie to their users.
can they print as many ecash tokens as they want?
yes.
the issue is when users attempt to pull funds out, the quantity ecash != the quantity bitcoin. the mints credibility will be destroyed, and user funds essentially rugged/stolen, and likely will have a run on the mint with users all trying to transfer out.
the fix supply is never effected, but mints can theoretically use fractional reserve practices and lie to their users.