# Smart Contracts

USDAI’s functionality is powered by a suite of smart contracts deployed across its supported blockchains, each designed to handle specific tasks with precision and efficiency.

#### Minting/Burning Logic

* **Purpose**: Manages the **issuance and redemption** of USDAI, ensuring supply aligns with collateralized compute credits.
* **Functionality**: Users call minting functions to deposit assets (e.g., ETH, compute credits) and receive USDAI, while burning functions redeem USDAI for compute or withdrawable assets. These contracts enforce the $1 peg and adjust supply dynamically.
* **Cross-Chain Sync**: Minting/burning events are synchronized across chains via bridge messaging to maintain a consistent total supply.

#### Oracle Integration

* **Purpose**: Connects USDAI to **GPU.NET’s pricing feeds**, ensuring the peg reflects real-time compute costs.
* **Functionality**: Decentralized oracles (e.g., Chainlink on Ethereum, custom oracles on GANChain) fetch data from Dapp.gpu.net’s marketplace, updating collateral ratios and triggering supply adjustments as needed.
* **Example**: If compute costs rise to $1.10/hour, oracles signal contracts to increase collateral requirements, preserving stability.

#### Governance

* **Purpose**: Enables **community input on protocol upgrades** after GPU.NET’s token generation event (TGE) in March 2025.
* **Functionality**: Governance contracts allow USDAI and GPU.NET token holders to propose and vote on changes (e.g., adding new chains, adjusting fees). Pre-TGE, governance is managed by the GPU.NET team via multi-signature wallets.
* **Transition**: Post-TGE, a decentralized autonomous organization (DAO) will assume control, ensuring community-driven evolution.