Issuance

Token issuance refers to the process of increasing the supply of Universal tokens in circulation through minting.

Universal Token Issuance Flow

The issuance process is managed by the Universal network but can only be initiated by a Merchant. Each token issued is fully collateralized by its respective underlying asset. Additionally, Universal tokens can only be minted to whitelisted destination addresses of authorized Merchants.

Sequence of Events for uAsset Issuance:

1. Merchant Initiation: The Merchant initiates the issuance process by sending a transaction to the Universal token contract. This transaction signals intent to issue Universal tokens, backed by an equivalent amount of the underlying asset.

2. Asset Transfer to Custodian:

   • The Merchant specifies the blockchain and recipient address where they wish to receive the minted Universal tokens.

   • The Merchant transfers the corresponding underlying assets to the designated Custodian.

   • The deposited assets must match the exact value of the Universal tokens being requested for issuance.

3. Verification and Minting:

   • The Universal network validates the received assets to ensure they match the requested issuance amount.

   • Once successfully verified, the network executes a minting transaction, creating the specified number of Universal tokens.

   • The newly minted tokens are then sent to the Merchant’s designated address on their specified blockchain.