To redeem is to make up for something bad by doing something good, or to exchange something like a coupon or points for a reward or money. In religion, it can mean to save someone from sin or evil.
From Latin *redimere* meaning ‘to buy back, ransom’, from *re-* (back) + *emere* (to buy). It originally referred to paying to free a person or thing from captivity.
When you redeem a gift card, you’re literally ‘buying back’ value that was stored for you. In stories, a ‘redeemed’ villain is someone who buys back their honor with brave or kind actions.
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