The XUSD redemption process is seamless, easy to understand, and economically sound. During the 100% phase, it is trivially simple. During the fractional-algorithmic phase, as XUSD is minted, XUS is burned. As XUSD is redeemed, XUS is minted. As long as there is a demand for XUSD, redeeming it for collateral plus XUS simply initiates minting of a similar amount of XUSD into circulation on the other end (which burns a similar amount of XUS). Thus, the XUS token’s value is determined by the demand for XUSD. The value that accrues to the XUS market cap is the summation of the non-collateralized value of XUSD’s market cap. This is the summation of all past and future shaded areas under the curve displayed as follows.