Understanding How to Mint and Burn PBG Token is essential for anyone engaging with PBG’s decentralized vault portfolios (DVPs) on the Cardano blockchain. These two core processes—minting and burning—allow users to interact directly with tokenized portfolios in a fully non-custodial and transparent way. This guide walks you through both actions, explaining the steps, tools, and key considerations involved, all while prioritizing autonomy and on-chain clarity.
What is PBG Token?
PBG Token is the first Decentralized Vault Portfolio (DVP) launched by PBG Capital. Designed as a fully on-chain and decentralized hedge fund, it gives users transparent access to a tokenized portfolio of digital assets. Operating on the Cardano blockchain and governed by smart contracts, PBG Token allows users to mint and burn tokens to join or exit the portfolio autonomously—without intermediaries or custodians.
For a detailed overview of the token, visit the official PBG Token page.
What Does It Mean to Mint and Burn PBG Token?
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.io 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.
Burning PBG Tokens means exchanging your tokens your tokens for the underlying assets held in the vault, like ADA, while accounting for a small burn fee. This fee, typically ranging from 0.1% to 2%, ensures the protocol’s operation costs are covered. With PBG’s secure, on-chain system, you can manage your investments confidently, leveraging the benefits of decentralized finance and Cardano staking. Unlike traditional finance, PBG’s non-custodial approach gives you full control, with transparent fees and real-time pricing updates.
Being able to Mint and Burn PBG Token is a key feature for DeFi use cases, offering a way to access your assets directly. Whether you’re new to what is decentralized finance or an experienced crypto user, understanding this process can help you navigate decentralized portfolios more effectively.
Before You Begin
To carry out either minting or burning, you’ll need:
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A Cardano-compatible wallet (PBG.io recommends using Lace for Chrome)
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Sufficient ADA to cover fees and transaction costs. See ‘Where to get ADA?‘ for more information.
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Access to the PBG Platform to begin the process
How to Mint PBG Token
1. Connect Your Wallet
To begin, access the PBG platform and connect a Cardano-compatible wallet. Your wallet should be set up and funded with enough ADA to proceed securely.
2. Create a Mint Order
Once the wallet is connected, the platform displays the ADA and PBG balances.
From here, initiate a mint order by selecting the “Mint” option to create PBG Tokens.
Enter the amount of ADA to deposit into the vault, and the system will calculate the equivalent PBG Tokens.
Proceed by selecting “Mint.”
A ‘Review Mint Order’ screen will appear, allowing you to confirm the transaction before approval. This step facilitates receiving PBG Tokens in exchange for a proportional share of the underlying portfolio assets, supporting access to a decentralized investment portfolio.
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.
How to Burn PBG Token
1. Access the PBG Capital Interface:
Start by visiting the PBG Capital platform, where you’ll find a user-friendly dashboard for for managing your assets in the PBG.io ecosystem. Look for the vault address and token policy details to ensure you’re in the right place. Be sure your DeFi wallet is connected to access and operate with the available PBG Tokens.
2. Select the ‘Burn’ Option:
Navigate to the “MINT | BURN” section on the right side of the interface. Click on “BURN” to begin the process of withdrawing assets from the vault. You’ll see fields to input the number of PBG Tokens you want to burn.
3. Specify the Amount of PBG Tokens:
Enter the number of PBG Tokens you wish to burn. The system will display the estimated amount of ADA you’ll receive, based on the current on-chain price. Note that a burn fee (0.1% to 2%) will be deducted, so you’ll receive slightly less ADA than the raw conversion suggests.
4. Review and Confirm the Order:
Review all details carefully, including the burn fee and the minimum ADA required for the transaction. You might see a message like “Not enough spare ADA to cover fees and/or min-deposit,” which can occur if your DeFi wallet isn’t connected or lacks sufficient ADA. Ensure your wallet is linked and has enough ADA to cover fees before confirming the order, knowing that prices are updated via on-chain oracles for accuracy.
5. Complete the Process and Verify:
Once confirmed, the burn will be processed on the Cardano blockchain. You’ll see the ADA withdrawn in your wallet, reflecting the net value after fees. Verify the transaction to ensure everything aligns with the on-chain pricing and your expectations.
How to Burn PBG Tokens offers a seamless way for DeFi users exploring Cardano staking or buying Cardano ADA to manage crypto assets securely. This process maintains transparency and efficiency through PBG’s innovative system.
Fees and Transparency
Whether you’re learning How to Mint and Burn PBG Token or just exploring the platform, it’s important to understand the fee structure:
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Minting & Burning Fees: 0.1% to 2%, depending on transaction size
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Management Fee: Approx. 0.01% daily (3.65% annually), applied automatically via supply adjustment
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Success Fee: Up to 30% above a 5% benchmark, recorded via on-chain vouchers
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All transactions are visible on Cardano’s blockchain, enhancing auditability
Check our Fee Structure Guide for more information.
Why Minting and Burning Matters in DeFi
The ability to Mint and Burn PBG Token gives users direct interaction with decentralized portfolios. There’s no need for centralized platforms or custodians. Every step is verifiable, and all decisions remain in your hands.
Final Thoughts
Learning how to Mint and Burn PBG Token opens up new ways to engage with decentralized tools while maintaining full control. Whether you’re depositing ADA or exchanging tokens back, the process is simple, secure, and recorded on-chain. For additional clarity, explore the detailed guides available on the PBG platform and stay informed about on-chain pricing and mechanics.
