Mint PBG Token: is the process of obtaining a proportional share of a decentralized vault portfolio (DVP) on the Cardano blockchain. Unlike traditional investment funds, PBG operates fully on-chain, ensuring security, transparency, and decentralization. This guide will walk you through the process of Minting PBG Token, including the requirements, steps, and key considerations.
Requirements Before Minting PBG Token
Before you start, ensure you meet the following requirements to successfully mint PBG Token:
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- A Cardano-compatible wallet – PBG recommends using Lace as a wallet for Chrome
- Sufficient ADA balance – You need enough ADA to cover minting fees and transaction costs.
- Access to the PBG Platform – Visit the official PBG website to initiate the minting process and learn more about what minting means in the crypto world.
Guide to Minting PBG Token
1. Connect Your Wallet
To begin, navigate to the PBG platform and connect your Cardano-compatible wallet. Ensure your wallet is properly set up and funded before proceeding, as this allows you to operate securely with assets like ADA for Cardano staking or buy Cardano ADA.
2. Create a Mint Order
Once your wallet is connected, initiate a mint order by sending assets to the designated smart contract. Enter the amount of ADA you want to deposit into the vault; the system will automatically calculate the equivalent PBG Tokens. Then click “Mint.” Next, a “Review Mint Order” screen will appear, where you can confirm your transaction and wait for approval. This step signals your intent to receive PBG Tokens in exchange for a proportional share of the underlying portfolio assets, providing exposure to a decentralized investment portfolio through the purchase of PBG Tokens.
3. Validation by the Mint Order Validator
The mint order validator ensures that every minting transaction is executed fairly and securely. This system verifies that:
- The user receives the correct value in return (minus fees).
- The transaction is signed and approved.
- The number of tokens issued meets the minimum requirement specified in the order.
- A reference voucher is issued if the benchmark price exceeds the starting price.
The DVP manager oversees the process, ensuring sufficient liquidity and security for all transactions, leveraging what is a smart contract in blockchain for transparency.
4. Receive Your PBG Tokens
Once the mint order is validated, the smart contract releases the newly minted PBG Tokens to your wallet. This entire process is conducted on-chain, providing full transparency and immutability. By minting PBG Tokens, you’re gaining access to a decentralized portfolio managed directly on the Cardano blockchain, without the need for intermediaries. To find the transaction, you can check the “Order History” section on the platform.
Fees and Considerations
Before minting PBG Tokens, be aware of the following fees and factors:
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- Minting Fees: A small fee is applied during the minting process, typically ranging from 0.1% to 2% of the deposited value (e.g., ADA), to cover operational costs.
- Burn Fees: Although not directly applicable to minting, note that withdrawing assets (burning PBG Tokens) incurs a similar fee of 0.1% to 2%, ensuring consistency across the platform.
- Management Fees: A daily fee of approximately 0.01% (or 3.65% annually) is charged to all DVP token holders by diluting the token supply, impacting the value of each PBG Token over time.
- Success Fees: A performance-based fee, up to 30% on any success above a 5% benchmark (e.g., relative to ADA), is deducted annually if the portfolio outperforms, tracked on-chain with NFT vouchers for fair reimbursement.
- Security and Transparency: Every transaction is recorded immutably on the Cardano blockchain, providing full transparency through what is a smart contract in blockchain.
- Non-custodial Management: Users retain full control of their assets without intermediaries, reinforcing PBG’s commitment to decentralized investment solutions in DeFi.
Why PBG Token is Democratizing Wealth
PBG Token is revolutionizing the way people approach wealth management. By enabling individuals to mint PBG Tokens, the platform allows for a truly decentralized way to access investment opportunities that were traditionally reserved for a select few. Learn more about how PBG Token is democratizing wealth and why it is leading the way in decentralized finance (DeFi).
Conclusion
Mint PBG Tokens is a simple and secure way for DeFi investors to deposit assets like ADA into PBG’s DVPs on the Cardano blockchain and receive tokenized shares. By following these steps, you can participate in crypto asset management confidently, understanding the role of fees and on-chain pricing. For more insights consider visiting our guide How to Burn PBG Tokens. Exploring additional resources can provide deeper knowledge for your investment journey.
