# Group Avatars

Group avatars are a type of avatar in the Circles ecosystem that represent collective entities rather than individual users.&#x20;

### Group Structure

Each group in Circles has:

* A unique blockchain address (similar to individual avatars)
* A specific type identifier
* An owner who has administrative control
* A treasury where tokens are stored
* A mint policy that governs token creation
* A name and symbol for its tokens
* A membership system
* Groups also maintain a count of their members and can store metadata via IPFS CIDs (Content Identifiers).

#### Groups support following CRC token operations:

* **Minting**: Groups can mint their own tokens using collateral from members
* **Redemption**: Members can redeem group tokens for the underlying collateral

### Understanding purpose of Groups

Groups within the Circles ecosystem serve several important purposes:

1. **Enabling Collective Economic Action**: Groups allow multiple individuals to create shared economic entities with their own currencies, extending Circles beyond personal tokens.
2. **Creating Community Currencies**: Groups can mint their own tokens backed by collateral, allowing communities to create currencies tailored to their specific needs.
3. **Pooling Resources**: The group treasury system allows pooling of resources from members.&#x20;
4. **Collective Governance**: Groups implement membership systems that can include conditions and expiry times.


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