Governance controls the addition/removal of bASSETS and sets their maximum weights.
A Basket Adjustment occurs when Governance chooses to change the maximum weight of a bASSET.
Secondly, a basket adjustment can occur when a bASSET is deemed unfit for inclusion. In this case, Governance can purge that bASSET entirely.
A bASSET'S max weight is changed by Governance.
Minting validity remains the same. This means that if Governance lowers the maximum weight of a bASSET so that it is below its current collateral level, minting is temporary disabled with this bASSET until it is below its maximum weight.
The weight is lowered through allowing free swaps into that bASSET and only allowing multi-proportional redemption.
Users are not allowed to swap out of an overweight bASSET.
Governance has the power to add bASSETS to a mASSET contract and dictate its maximum weight.
The removal of a bASSET is deemed complete when its collateral level and max weight = 0. See Expedited Rebalance below.
It may be deemed necessary by Governors to expedite an adjustment and ultimately remove a bASSET entirely. This will be possible through liquidating the given bASSET through a two phased auction mechanism described in Re-collateralisation.