That’s one approach to profit, called “fractional reserve”. Typically, people who want a 1-1 backed coin are uncomfortable with that model… so you instead take

That’s one approach to profit, called “fractional reserve”. Typically, people who want a 1-1 backed coin are uncomfortable with that model… so you instead take profit on the issuance: you charge $1.05 to issue $1 in tokens (while keeping $1 in the vault) — a process called seigniorage. https://en.wikipedia.org/wiki/Seigniorage https://en.wikipedia.org/wiki/Seigniorage