> For the complete documentation index, see [llms.txt](https://wiki.elephant.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.elephant.money/services/trumpet/token-mechanics-mint-and-redeem.md).

# Token Mechanics - Mint & Redeem

It is the process of MINTING and REDEEMING Trumpet that ensures the $TRUNK/$TRUMPET ratio only ever goes up. $Trumpet can only be minted through the dApp using the native $TRUNK stablecoin. 

**MINT:**

Minting (buying) $TRUMPET can only be done through the dApp with $TRUNK already held by the user.

All mints charge a 5% mint fee.

<figure><img src="/files/EehE26qnrkPRsVnYfCjj" alt=""><figcaption></figcaption></figure>

**REDEEM:**

Redemption can be considered selling $TRUMPET in an OTC (Over the Counter) direct exchange between the user and the protocol with no price impact beyond the Redemption Fee. All redemptions charge a 5% redemption fee.

<figure><img src="/files/J0GT16QAcjOBTl4ntdHD" alt=""><figcaption></figcaption></figure>

**Fee Breakdown:**\
Mint Fee - 5% (Collateralized backing of the token)\
Redeem Fee - 5% (Collateralized backing of the token)\
Transfer Fee - 0%