Burn-mint's fatal flaw is downturn reconciliation
Ask Akash: July updates on Stable Settlements? (Akash Network)
“One model we looked at seriously was a burn-mint model like Helium… the big challenge is reconciliation during a downturn. If you want to burn AKT you have to have enough AKT left so you can re-mint the stable. We’re trying to solve that problem — it’s not an easy problem to solve, no one has done that really well; of course UST collapsed because of that.” — 00:00:42
Context: July 2022, weeks after the Terra/UST collapse; explains why Akash didn’t rush a burn-mint stable mechanism.