6.5. Mint & Destroy

When players use LMG for gambling games, the price of LMG itself should not fluctuate too much, and it should play the role of stablecoins more often. However, as more and more players enter, the system gives each player a fixed free reward, which requires more total LMG chips.

When the number of players reaches a certain value, the total chips supplied by the market cannot meet the market demand chips at all, and more chips need to be minted to meet this demand. This process is like when an economy expands, and we need more money to meet the needs of economic activity.

The newly created LMG tokens must be supported by value, otherwise, the market will recognize that the currency is over-issued. In LM, we will use the equity token LMT as the valued support of the newly minted LMG: that is, when the agreement determines that the conditions for additional issuance and minting of LMG are met, the LMT income vault will be credited to the LMG income vault to deposit LMT for destruction, and then LMG will be based on the value of the batch of LMT mints new chips of the same value of LMG. At the same time, when the protocol determines that LMG needs to be destroyed, the LMG income vault will destroy the LMG tokens it controls and mint new LMT tokens.

The additional issuance judgment conditions must meet the token issuance principles in 4.1 above and the price control principles in 6.3 above.