The metaphor comes from the minting and melting of physical coins.

You deposit bitcoin and the Mint mints you a physical token (coin).

You melt that coin (it no longer physically exists) to get back your bitcoin.

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It falls apart because bitcoin on lightning is still a coin, in every relevant sense. It’s not ore.

Curious your thoughts

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I think you've done a great job mapping out the landscape and dilemma for mint operators. One recent development which may help clarify the regulatory situation in the longer term is the NUT-22 Blind Authentication Token.

This allows a mint operator to restrict use of the mint to authorized people... this allows, for example, a mint to KYC people at the on/off ramps, but keep privacy at the level of in-mint transactions.

This would be much like a bank only issuing and redeeming notes to depositors they know, but not knowing the movement of the cash otherwise.

Nice, that could be a useful basis for cooperation with some of the more reputable regulators out there. I'm thinking of putting together an Intro to Cashu deck for a few of the more promising regulators in Asia to test the response in person, if you know of anyone else doing the same please let me know, happy to coordinate.

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