Definition
A reissuance token is a control asset created alongside a newly issued token on a Bitcoin sidechain like Liquid. Its sole purpose is to act as a cryptographic minting key: whoever holds the reissuance token may issue more of the corresponding asset, and whoever does not, cannot. This cleanly separates the question of "who owns the supply" from "who can expand the supply."
Fixed versus expandable supply
At issuance time the creator chooses how many reissuance tokens to mint, often a single one. If the issuer destroys or never creates a reissuance token, the asset's supply is permanently fixed, an auditable hard cap enforced by the protocol rather than by promise. If the issuer keeps the reissuance token, the asset behaves like an expandable stablecoin or reward currency where new units can be minted on demand. Because the reissuance token is itself a transferable asset, control over future minting can be sold, escrowed, or placed behind a multisig.
Privacy of minting
The reissuance amount can be blinded just like any other Liquid value, so an issuer can mint additional supply without revealing the size of the new tranche on-chain. This is a meaningfully different supply-governance model from base-layer Bitcoin, whose issuance schedule is fixed in consensus and cannot be reissued by anyone.
Reissuance tokens are produced during asset issuance and travel through the same confidential assets machinery as the asset they govern.
In Simple Terms
A reissuance token is a control asset created alongside a newly issued token on a Bitcoin sidechain like Liquid. Its sole purpose is to act…