Token redemption refers to the reduction of supply of index tokens through the action of redeeming index tokens for the underlying assets.

This redemption process is defined below:

  1. User Initiation: User initiates the redemption process by burning n AMKT tokens via redeem(uint256 amount) in the issuance smart contract, signaling their intention to redeem the tokens for their in-kind value.

  2. Smart Contract Action: Upon receiving the burn transaction for n AMKT tokens, the issuance smart contract verifies the burn and prepares to release the in-kind assets.

  3. Asset Release: The issuance smart contract then releases the in-kind assets to the designated address provided by the user.

  4. User Receives Assets: User receives the in-kind assets corresponding to the burned n AMKT tokens at their designated address.

All AMKT holders are entitled to redeem the underlying AMKT assets directly with the smart contract.

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