Explain the Difference between Centralized and Decentralized Stablecoin Mint and Burn Governance ▴ Learn

Explain the Difference between Centralized and Decentralized Stablecoin Mint and Burn Governance.

Centralized governance (e.g. USDT, USDC) is controlled by a single entity that manages the collateral and decides when to mint or burn.

This offers speed and simplicity but requires trust. Decentralized governance (e.g.

Dai) uses smart contracts and community voting (DAOs) to automate and approve mint/burn decisions, aiming for transparency and censorship resistance.

What Is a ‘Governance Token’ and How Does Its Utility Affect Treasury Decisions?

How Does Token-Based Voting Differ from Traditional Corporate Shareholder Voting?

How Does a Tokenized Security Handle Voting Rights When the Underlying Asset Has Governance Features?

Is a Buyback-and-Burn Mechanism Superior to a Direct Fee Burn from a Valuation Perspective?