Skip to content

Docs

Melt

Burning a Good to get its inputs back, and why NAV is the floor.

How melting works

Burn a Good at any time and the underlying stocks return to your wallet. The floor is always NAV.

  1. Send the Good to the Refinery.
  2. The melt fee, 1.5% on every tier, is charged in USDG.
  3. The Good is burned and every stock token it escrows is transferred to you.
Phone+Silicon+Gold+Lithium+Iron+Glass+Neon

The floor

Because a Good can always be melted for its inputs, nobody has to sell one below what it holds. If a Good ever trades under NAV, buying it and melting it is a straightforward trade, and that keeps the market from staying there.

The floor is NAV less the melt fee. One melt reaches the stock tokens from any tier; a Product does not melt into Components first.

Melting and caps

A melt reduces supply but does not reopen the recipe. See Caps and seasons.