# Burn-mint's fatal flaw is downturn reconciliation

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2022-07-20
- **Theme:** Crypto & DePIN — https://www.gregosuri.com/predictions/crypto-depin/
- **Source:** Ask Akash: July updates on Stable Settlements? (Akash Network)
- **Watch at:** 00:00:42 — https://www.youtube.com/watch?v=3sE2AHvq95Y&t=42s
- **Canonical:** https://www.gregosuri.com/predictions/crypto-depin/2022-07-20-burn-mint-s-fatal-flaw-is-downturn-reconciliation-s25f/
- **Cite as:** Greg Osuri, "Burn-mint's fatal flaw is downturn reconciliation," Ask Akash: July updates on Stable Settlements? (Akash Network), 20 Jul 2022, 00:00:42. https://www.youtube.com/watch?v=3sE2AHvq95Y&t=42s

## Quote — verbatim

> 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.

## Context — site annotation, not spoken

July 2022, weeks after the Terra/UST collapse; explains why Akash didn't rush a burn-mint stable mechanism.