Issuing Native Tokens

The Token Factory module, x/denom, allows smart contracts to create their own native denominations. This provides developers with the ability to create custom tokens for their applications, which can be used for various purposes such as governance, utility tokens, or rewards.

Denominations

In Kujira, a denomination is a string identifier for a token. When creating a new denomination with the Create denom message, the subdenom parameter is combined with the calling contract’s address to create a unique denomination. The format for the resulting denomination is factory/{address}/{subdenom}.

Interfaces Exposed to Smart Contracts

The Token Factory module exposes the following interfaces for use by smart contracts:

Create

This message allows the contract to create a new denomination:

DenomMsg::Create {
    subdenom: Denom,
}

ChangeAdmin

This message allows the contract to change the admin of a denomination:

DenomMsg::ChangeAdmin {
    denom: Denom,
    address: Addr,
}

Mint

This message allows the contract to mint new tokens of a specific denomination:

DenomMsg::Mint {
    denom: Denom,
    amount: Uint128,
    recipient: Addr,
}

Burn

This message allows the contract to burn tokens of a specific denomination:

DenomMsg::Burn {
    denom: Denom,
    amount: Uint128,
}

Example: Creating a Denomination

Here’s an example of creating a new denomination from a smart contract:

let response = Response::new()
    .add_message(DenomMsg::Create {
        subdenom: "mytoken".into(),
    });

In this example, a new denomination will be created with the subdenom “mytoken”. The resulting denomination will be factory/{address}/mytoken.

Example: Minting and Burning Tokens

Here’s an example of minting new tokens of a specific denomination:

let response = Response::new()
    .add_message(CosmosMsg::Custom(KujiraMsg::Denom(DenomMsg::Mint {
        denom: my_denom.clone().into(),
        amount,
        recipient: recipient_address.clone(),
    })));

And here’s an example of burning tokens of a specific denomination:

let response = Response::new()
    .add_message(CosmosMsg::Custom(KujiraMsg::Denom(DenomMsg::Burn {
        denom: my_denom.clone().into(),
        amount,
    })));

Denomination Creation Fee

There is a fee associated with creating a new denomination. On mainnet, the fee is 10 KUJI, and on testnet, it is 100 KUJI. Your contract must have sufficient funds to pay the fee in order to create a new denomination.