# BST Minting and bnUSD Redeeming
The BST token is backed by an increasing amount of [bnUSD](https://balanced.network/stablecoin/).
* All interactions in the Blobble Playground, Orphanage, Market and Finance place are designed to make the amount of bnUSD grow faster than the total supply of BST.
Minting and Redeeming BST incurs a 5% tax:
* 95% of minted or redeemed BST gets issued to the user
* 4% of minted or redeemed BST gets added to the bnUSD in the treasury
* 1% of minted or redeemed BST goes to the Blobble Foundation (team + marketing)
### BST MINT
This is what happens when you mint BST
*NOTE: In favor of simplification, the above infographic does not contain the Blobble Foundation (team + marketing) allocation.*
`chunksize = 2000`\
`amountOfChunks = bnusdSend / chunksize`\
\
`for amountOfChunks {`\
`1. calucate the price based on bst supply & bnusd in contract`\
`2. get amount of bst to mint based on price - 5% and mint to user`\
`3. mint 1% of amount to team`\
`4. update the amount of bst supply and bnusd in contract`\
`}`\
\
`for remaining bnusd {`\
`1. calucate the price based on bst supply & bnusd in contract`\
`2. get amount of bst to mint based on price - 5% and mint to user`\
`3. mint 1% of amount to team`\
`}`
### **BST REDEEM**
this is what happens when you use BST to redeem bnusd
*NOTE: In favor of simplification, the above infographic does not contain the Blobble Foundation (team + marketing) allocation.*
`chunksize = 2000 // <- bnusd-value`\
`price = bnusd-in-contract / total-supply-bst`\
`tokens = amount-of-tokens-send-by-user`\
\
`bnusdValue = tokens * price`\
\
`while bnusdValue > 2000 {`\
`// amount of bst to handle in this iteration`\
`bstAmount = chunksize / price`\
`bstAmountPostFee = bstAmount * 0.95`\
`bstTeamFee = (bstAmount - bstAmountPostFee) / 5`\
\
`1. burn bstAmount minus bstTeamFee`\
`2. send (bstAmountPostFee * price) in bnusd to user`\
`3. send team fee in bst to team`\
`4. updated price based on new bst supply and bnusd in contract`\
`5. set 'bnusdValue' with updated price`\
`}`\
\
`for remaining bst tokens {`\
`bstAmount = remaining-tokens / price`\
`bstAmountPostFee = bstAmount * 0.95`\
`bstTeamFee = (bstAmount - bstAmountPostFee) / 5`\
\
`1. burn bstAmount minus bstTeamFee`\
`2. send (bstAmountPostFee * price) in bnusd to user`\
`3. send team fee in bst to team`\
`}`
