How Scrip works

Every Scrip goes through the same four steps. The Scrip program on Solana enforces each of them; the app and the API prepare transactions, and your wallet signs.

Issue

Mint

Accrue

Harvest

Issue

An issuer signs once with a name, a ticker, a metadata address for the logo, and a route. That signature creates the Scrip's account in the program, a Token-2022 mint carrying its metadata, and the route its yield will take. The mint's authority is the program itself, so no one, the issuer included, can create units except through a deposit.

Mint

Anyone deposits USDC and receives the Scrip, dollar for dollar. The USDC joins the shared reserve; the Scrip's supply grows by the same amount. Redeeming runs the same path backwards: the Scrip is burned and USDC is paid from the reserve's buffer.

Accrue

The reserve holds its dollars partly in tokenized Treasuries, which earn. Whenever the reserve's value rises above everything it owes, the difference is recognized as yield and divided among the Scrips by their supply: a Scrip with twice the supply earns twice the share.

Harvest

A keeper harvests each Scrip's accrued yield. A protocol fee comes off first; the rest goes down the Scrip's route: buying back its community token, growing every holder's balance, paying the issuer's treasury, or a split of the three.

Converting along the way

Because every Scrip's dollars sit in the same reserve, a holder can convert any Scrip into any other at par at any time. The first is burned, the second minted, and no dollar leaves the reserve. See Conversion at par.