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