The Gold DAO, initiated by DAO.Link, is a revolutionary project aimed at digitizing and democratizing the value of gold through blockchain technology. This initiative combines the timeless appeal of gold with an innovative method allowing people around the world to trade physical gold securely and fairly, bypassing traditional banking systems.
For over 5,000 years, gold has been deeply connected to humanity. It’s not just a metal; it is timeless, corrosion resistant and highly malleable for craftsmen. Its rarity coming from deep within the earth adds to its appeal, historically associated with wealth, prestige and royalty.
Gold symbolizes lasting value and expertise in our collective history. However, its inconvenient physical weight led to the abandonment of gold as a physical currency.
Web 3.0 and blockchain technology can solve this problem and improve existing solutions. Indeed, gold can be digitized into blockchain-based tokens, making it highly portable and easy to transfer, while blending gold’s attractiveness and store-of-value characteristics with the power of decentralization, transparency, transferability and security of blockchain technology – a long-awaited marriage.
This is where the Gold DAO role takes place.
The Gold DAO, initiated by DAO.Link, builds on the achievements of ORIGYN protocol And Yumi. Take advantage of Internet Computer Protocol(ICP), this collaborative project aims to revolutionize the role of gold in the digital and financial world.
DAO.LINK has collaborated with innovative companies and digital gold pioneers including ORIGYN protocol , Yumi Market, DFINITY Foundation, Cock, Metalor, Loomis, KPMGAnd Quantum Agency alongside highly qualified people. Together, they are reshaping the way we can transact gold around the world, making it more accessible and secure for everyone.
The motivations behind the Gold DAO are twofold. Firstly, it aims to create a secure and fully compliant product based on the physical gold existing on the blockchain, enabling a liquid medium of exchange and reaping the benefits of gold while addressing its main disadvantage: lack transportability.
Second, it seeks to leverage the security of gold to create a stablecoin pegged to USD as well as collateralized by digitized gold – GLDT or directly by GLD-NFT.
The first and most fundamental properties of the solution are security, compliance and cross-chain character. We guarantee security by insuring the physical gold and storing it at Loomis and or Metalor in Switzerland, which is audited quarterly on site by KPMG. The gold has a refinement grade of 99.99% and is purchased by Metalor, a global leader in gold refining.
We exploit the unique technology of Internet Computer Protocol(ICP) to establish a Nervous system department (SNS). The SNS, as the sole holder of the private key, guarantees the decentralization, transparency and security of the project while preventing malicious actors from disrupting the project or directing it solely towards their own interests. The SNS will be the sole holder of the private key and the transparency of its mechanism is accessible to everyone.
This guarantees the continuity of the project, supported by the power of blockchain. The funds raised through the SNS will be used to continue the development of phases 2 and 3 mentioned below. Gold DAO SNS holders obtain governance tokens (GLDGov), allowing them to participate in project governance and share in project revenue created by The Gold DAO.
The Gold DAO SNS includes three phases:
- Phase 1: The primary phase has already been completed by ORIGYN and Yumi. A digital commodity representing physical gold secured and audited in Switzerland. This involves the creation and issuance of GLD-NFTs; NFTs linked to physical gold bars held in high-security storage and identified by a serial number. Technically, these NFTs are based on the ORIGYN protocol, a Real World Assets (RWA) and a next generation NFT protocol. GLD-NFTs are indexed to the 2nd London Fixing and can represent 1g, 10g, 100g, or 1 kg of gold.
- Phase 2: This phase aims to introduce fungibility to GLD-NFTs, creating a liquid digital gold token known as GLDT. The lack of fungibility and divisibility has hindered the broader use of gold-based NFTs as a medium of exchange, similar to the limitations of pure commodities. The SNS will hold the private key, allowing the code to be pushed and updated to the smart contract operating the GLD-NFT exchange to GLDT, transforming them from non-fungible assets to fungible assets. GLD-NFTs are securely stored in a smart contract, and the creation rate of GLDT will be directly linked to the value held in that contract. Unlike GLD-NFTs, GLDT is mathematically divisible and can be easily transferred, making it a versatile medium of exchange that derives its value from the price of gold.
- Phase 3: In this final phase, the nature of gold as a commodity becomes crucial as it paves the way for the creation of a gold-backed stablecoin pegged to the US dollar – initially, USDG , stablecoins backed by gold. will not be limited to just USD currency in later steps. The funds collected by the SNS will finance the development of this stablecoin. Phase 3 is the starting point for revenue generation.
The Global Tokenomics of the Gold DAO and the stability mechanism of the USDG were theorized by Dr. Yulin Liu, a monetary theorist currently a Senior Economic Advisor at ChainLink. He is also a former chief economist at Liquity, a guest economist at the Bank of Finland and a professor of economics at HUST.
GLDGov SNS holders within the Gold DAO benefit from multiple benefits. In phase 3, they receive the revenue generated by the stablecoin (phase 2, a 1-to-1 exchange, does not generate fees). These holders actively make decisions regarding gold smart contracts, tokenomics, and project processes. This active participation improves decentralization and security, strengthening the project against corruption, centralization of power and malicious actors, and ensuring its continued operation.
Additionally, holding GLDGov tokens provides indirect exposure to digital gold assets, which may grow in value as the Gold DAO project succeeds. These benefits collectively provide SNS holders with financial incentives, a voice in governance, and participation in this historic DAO project.
Last but not least, the ORIGYN foundation agreed to make an incredible donation to ensure the success of The Gold SNS by providing $500 million OGY tokens. This half billion $OGY will be staked for 5 years, with staking rewards allocated monthly to GLDGov SNS holders. 50% of all this will be distributed in 5 years. The remaining 50% will continue to be staked within the SNS, providing revenue to the DAO to support its further development. Let’s not forget that $OGY is the basis of the digital gold mechanism described above. Each new gold certificate burns OGY tokens, creating a fully deflationary mechanism as described here.
The white paper and tokenomics will be released very soon on all of our platforms. We welcome questions and comments and always seek constructive and intelligent engagement from the community. A special bonus will be dedicated to valuable contributors.
- If you are interested, please contact us with your contact details here: firstname.lastname@example.org
- A link to all our platforms: linktr.ee/golddao
- Follow Gold DAO on Twitter: twitter.com/gldrwa
- Join Gold DAO on Telegram: t.me/TheGoldDAO
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