# Minting Reward and Withdrawal Fees

When minting rewards and withdrawal fees are high:

* Issuers are incentivized to mint ZeUSD
* Issuers are disincentivized to redeem ZeUSD
* This increases the ZeUSD supply
* The increased supply tends to put downward pressure on the ZeUSD price

When withdrawal fees, minting rewards are low:

* Users are incentivized to redeem/withdraw
* Users are disincentivized to mint ZeUSD
* This decreases the ZeUSD supply
* The decreased supply tends to put upward pressure on the ZeUSD price

At the current stage, protocol implements a simplified state machine for both minting rewards and redemption fees, characterized by the following parameters:

**Minting Rewards States:**

1. **Fixed Stability Rate:** A predetermined positive rate offered to incentivize minting
2. **Zero Rate:** No minting incentives provided

**Redemption Fee States:**

1. **Positive Fee:** A non-zero fee applied to redemptions
2. **Zero Fee:** No cost barrier for redemptions


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.zoth.io/zoth/products/zeusd-an-omni-chain-and-composable-stable-token/minting-reward-and-withdrawal-fees.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.