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token_shielding.md

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Token Shielding

Token shielding is the process of transferring on-chain tokens (where they are transferred transparently) to off-chain STF (where transactions are private). The on-chain tokens are kept in enclave custody on a bonding account until unshielded again.

Unshielding is the reverse process, where off-chain funds are transferred to on-chain acounts. The bonding account then releases these funds on behalf of the owner's public account.

Sharding UML