Explain the Concept of ‘Seigniorage’ in the Context of Stablecoins

Seigniorage is the profit made by a government by issuing currency, calculated as the difference between the face value of the currency and the cost of producing it. In algorithmic stablecoins, the seigniorage is the profit made from minting new stablecoins at a low cost and is often distributed to holders of the volatile governance token.