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Since USDC is centralized, in theory it's possible if something happens to Sol for all USDC tokens issued on that network to be transferred to another carrier c
by 323 4y ago
Since USDC is centralized, in theory it's possible if something happens to Sol for all USDC tokens issued on that network to be transferred to another carrier chain. Like how you can exchange old banknotes for new ones. So the owner of USDC/Sol presents proof of ownership to Circle, and they issue new USDC/X coins while voiding the old ones.
Does anyone know if this was discussed or anything similar happened in the past?
- olalonde 4y agoYes. I personally know of a case where Tether agreed to burn and re-issue USDT at a different address because the USDT had gotten stuck in a buggy smart contract.
- chollida1 4y agocan you show us the transaction on the blockchain of this burning and reissuing?
- 22c 4y agoI don't believe Circle/Centre has the ability to burn tokens on your behalf. Realistically if a chain (eg. SOL) was going down the tube, you'd probably want to hit fiat off-ramps (eg. deposit to Binance) or bridge out of SOL and pay the appropriate gas fees. That is to say, if Binance halted deposits from SOL for a long amount of time, you'd have the option of bridging from SOL to ETH and then cashing out your USDC from ETH. It would just cost you more in fees to do so.