What Is the Difference between Minting and Burning a Stablecoin?

Minting is the process of creating new stablecoin tokens, typically in exchange for collateral or a corresponding amount of fiat currency. Burning is the process of permanently removing stablecoin tokens from circulation, usually when the stablecoin is redeemed for its underlying collateral or fiat.

These mechanisms are crucial for supply control and peg maintenance.