Lock-and-Mint and Burn-and-Mint Transfers Produce Different Balances

Lock-and-mint and burn-and-mint transfers create different kinds of balances across blockchains, so the source-token action helps determine whether users receive a backed representation or a native asset. These mechanics describe two bridge models, not every way assets can move between networks. Other designs include atomic swaps and liquidity networks. With lock and mint, tokens stay on the source network while matching tokens are issued on the destination network. The destination tokens depend on the originals remaining locked. If those assets are released improperly, the new tokens can be left without backing.

Source: TokenPost