A unique token that grants the ability to create more of a specific SLP token, commonly used in the Bitcoin Cash ecosystem.
The Minting Baton is a unique token associated with a specific Simple Ledger Protocol (SLP) token. It grants the holder the ability to create (mint) more of that specific token. SLP is a token protocol built on the Bitcoin Cash blockchain that enables the creation of custom tokens with minimal overhead and high efficiency.
"If Alice creates an SLP token called 'AliceCoin' on the Bitcoin Cash network, she can also create a Minting Baton for 'AliceCoin'. As long as she holds this baton, she can mint more 'AliceCoins' whenever she wants, without requiring a new token deployment."
Control of the Minting Baton determines who can mint new tokens. The baton can be transferred between wallets, allowing different entities to gain the ability to mint new tokens. This feature enables flexible token management strategies, where the issuance authority can be passed between individuals or organizations as needed. Unlike some token systems that require fixed supplies at creation, SLP's minting baton approach provides ongoing flexibility.
"If Alice transfers the Minting Baton for 'AliceCoin' to Bob, then Bob gains the ability to mint new 'AliceCoins'. This can be useful for transitioning control between team members or for implementing decentralized governance structures."
If a token's Minting Baton is not created or is destroyed (burned), no more instances of that SLP token can be created. This makes the total supply of that token fixed. The option to permanently fix supply provides token creators with multiple issuance strategies, from indefinitely mintable tokens to those with a carefully managed finite supply. This is particularly valuable on the Bitcoin Cash network, where transaction fees remain low regardless of token activity.
"If Alice decides to burn the Minting Baton for 'AliceCoin' by sending it to an unspendable address, no more 'AliceCoins' can be created, making the total supply of 'AliceCoins' fixed and potentially increasing their scarcity value."
The decision to create, transfer, or burn a Minting Baton can be part of a token's issuance strategy. It can influence the token's scarcity, distribution, and control. Some projects use a multi-signature wallet to hold the baton, requiring approval from multiple parties to mint new tokens. Others implement time-locked contracts to regulate when new tokens can be minted. The Bitcoin Cash ecosystem enables these complex token strategies with minimal transaction costs.
"By keeping the Minting Baton for 'AliceCoin' in a multi-signature wallet requiring 3-of-5 approvals, Alice ensures that no single person can unilaterally increase the token supply, creating trust in the token's monetary policy while still maintaining flexibility."
Technically, the Minting Baton is implemented as a special UTXO (Unspent Transaction Output) with specific metadata that identifies it as the baton for a particular SLP token. When a token creator wants to mint additional tokens, they must include this UTXO as an input in their transaction, proving they have the authority to create new tokens. After minting, the baton is typically recreated as a new UTXO to maintain the ability to mint in the future.
"When minting new SLP tokens on Bitcoin Cash, the transaction must include the Minting Baton UTXO as an input and create a new baton output alongside the newly minted tokens. This chain of custody creates an auditable history of all minting operations."
All terms and definitions may update as the Cryptionary improves.