Comprehensive Overview of Gold DAO

Governance
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A New Era in Blockchain-Backed Gold Assets

Gold DAO embarks on a transformative journey, blending the security of physical gold with the innovative capabilities of blockchain technology, leveraging the Internet Computer Protocol (ICP). This integration is pivotal for expanding the utility of ICP and introducing a stable asset class in the dynamic cryptocurrency market.

Tokenomics : Diverse and Strategic

Gold DAO’s ecosystem encompasses multiple tokens, each tailored to serve distinct roles:

  • GLD NFT : Direct ownership of physical gold stored in Swiss vaults, offering tangible investment and redeemability.

    1. Expert Insight : Each NFT is backed by a specific gold bar, with serial numbers and purity details transparently recorded on the blockchain.
    2. Redeemability Factor: Holders can redeem physical gold, bridging digital and tangible assets seamlessly.

  • GLDT : A fungible cross-chain token that can act as a medium of exchange. It fractionalizes gold ownership and acts as a stable collateral for DeFi.

    1. Cross-Chain Utility: Ensures liquidity across multiple blockchain ecosystems, enhancing its appeal to a broader investor base.
    2. Collateral Efficiency: Offers a robust collateral framework for DeFi.

  • USDG : A stablecoin backed by GLDT, providing a reliable alternative to fiat-backed stablecoins.

    1. Inflation Resistance: The value of the collateral of USDG, i.e. GLDT, is unaffected by the erosion of inflation.
    2. Financial Stability: The liquidity risk is lowered due to the price stability of the GLDT.

Distribution and Allocation of GLDGov Tokens:

  • Total Supply: 1 billion, capped supply with a deflation mechanism.
  • SNS Fundraising Contributors: 200 million tokens (20% of total supply) are opened to the community for voting power and staking rewards.
  • Dev Team: 180 million tokens (18%), released over 24 months with a 3-month delay, aligning with the project’s long-term success. Those funds are used for 2 years as incentives for the team.
  • Treasury: 620 million tokens (62%), earmarked for strategic development, marketing, partnerships, and community incentives.The utilisation of these funds is subject to a vote from the SNS.

Voting Power:

Community will have 57.8% of voting power.

The remaining 42.2 % of voting power are assigned to the developer neurons hence the community will have the majority of voting power.

In the governance model of neurons within the system, a neuron must have at least 100 GLDGov tokens and a minimum dissolve delay of 3 months to vote. The maximum dissolve delay is 2 years. Neurons with longer dissolve delays receive a bonus multiplier up to 2, increasing linearly for delays between 3 months to 2 years.

Additionally, neurons accrue an age bonus multiplier from 1 to 1.5 for ages up to 2 years. For example, a neuron with a 2-year dissolve delay and 2-year age gets a multiplier of 3. This governance framework ensures a balanced and weighted voting structure, with the community owning more voting power than the developer team, promoting decentralized governance.

Audit and Security of Gold Assets

Gold DAO ensures rigorous security and transparency in managing its physical gold reserves:

  • Regular Independent Audits: Conducted by renowned firms like KPMG and an independent Swiss Oracle to align physical gold holdings with issued GLD NFTs.
  • Swiss Vault Storage: High-security storage for physical gold.
  • Accessible Audit Reports: Providing complete transparency to token holders.

Cross-Chain Functionality of GLDT

GLDT’s cross-chain design promises substantial benefits:

  • Enhanced Market Access: Targets liquidity in Ethereum and Bitcoin networks.
  • DeFi Portfolio Diversification: A stable, gold-backed asset for DeFi investors.

Expansive Partner Ecosystem

Gold DAO’s strength lies in its strategic partnerships:

  • ORIGYN Foundation: Enhancing GLD NFT’s security and transparency.
  • YUMI Marketplace: Providing trading platforms and ensuring regulatory compliance.
  • Metalor: Providing the highest quality of refined gold of 99.999%.

Funding Role of SNS

The Service Nervous System (SNS) is instrumental in funding:

  • Project Development and Maintenance: Continual improvements and updates.
  • Marketing Initiatives: Broadening Gold DAO’s reach.
  • Operational Expenditures: Covering listings, audits, and other services.

Conclusion

Gold DAO is set to redefine the intersection of traditional asset classes and blockchain technology. It stands to significantly influence the ICP ecosystem and the DeFi sector, offering innovative, asset-backed digital financial solutions. We invite the Dfinity community’s experts to engage deeply with our project and contribute to its evolution.

GOLD DAO WHITEPAPER

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Excellent work!! I congratulate all the people working at goldDAO and Origyn for achieving these beautiful projects!!

Simple question, regarding the term
“Inflation Resistance”
GLDT, measured in USD, would have more and more value because it is a fraction of gold that does not devalue. USDG is devalued since it follows the dollar and the dollar has inflation? (stablecoin like usdt)

Theoretical example to understand:
Firstly, 2000 USDG is generated, which is equivalent to 1 GLDT.

After a while you need to have 2500 USDG to be equivalent to 1 GLDT?

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Hi FranHefner, thank you for your question.
By inflation resistance, it means the collateral GLDT itself is protected from inflation. The USDG is pegged to USD and its value is subject to the erosion of inflation.
In the last two decades, USD has lost half of its purchasing power while the gold price has increased more than three times, which makes GLDT an inflation-resistant financial vehicle.
For example, if a user holds some GLDT, he/she can pledge GLDT as a collateral and mint USDG for daily usage. In a few years, the user can pay back the USDG and redeem the GLDT back. Unlike USD-pegged stable coins, the gold-backed GLDT is inflation resistant.

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real world assets on the blockchain powered seamlessly by ICP
cheers to the team for pulling this up for the community

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This is beautiful in so many ways.

  • I would also like to see your plans to getting the USDG out into exchanges and wallets and into Crypto Twitter more broadly. I feel this is literally the best stablecoin in the world and I would presume people could use it on exchanges and self-custody wallets (like Ledger). In an interesting twist, this project could find some common ground between gold bugs and crypto people. Staying only on ICP would be underplaying the potential.

Very excited about this. We have had some good SNS launches but I feel to date, this tops the cake with immediate and totally unique value proposition.

God speed to all the critical partners in making this happen. :pray:

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Hi, if I buy a GLD NFT and want to sell it after some time, who will buy it from me? Thanks.

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Hi @Alkapone.ic, you can list it on the secondary market and anyone who is interested can purchase it, or you can sell it directly back to Yumi.

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The blend of real gold and blockchain magic isn’t just a cool idea – it’s a game-changer. Gold DAO isn’t just about making money digital; it’s about making it smart and stable. And guess what? They want everyone to be a part of it. The fact that they’re asking the Dfinity community to jump in and help out shows they’re serious about making this a group effort.

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Excited about this. Will definitely add the DAO SNS to 221Bravo App :sunglasses:

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Gold-backed stable coins have previously been launched as a product in Switzerland. What is the difference between this Gold Dao and AgAu?
Is Gold NFT ownership legally treated the same as physical gold? In Japan, purchases over 2,000,000 yen are required by the government to have a Certificate of Payment. Is KYC being implemented at Yumi to address these issues?
Also, GLDTs secured by Gold NFTs are supposed to be issued by the user who purchased them, but is there any plan for Gold DAO to take the initiative to issue them in large quantities since the volume is small and there is no economy of scale?

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Hello hokosugi, thank you for your questions. I noticed that the AgAu token you mentioned is not listed on CoinMarketCap. Instead, I found Tether Gold (XAUt) and Pax Gold (PAXG) listed, each with approximately a $500 million market cap.

There are significant differences between GLDT and XAUt/PAXG:

  1. Gold Dao offers a superior proof of reserve due to the non-fungibility of the gold NFT. Each gold NFT corresponds to a specific gold bar with a unique serial number stored in the vault and audited by KPMG. Users can redeem a Gold NFT for the specific gold bar with the same serial number stored in the NFT at any time. This non-fungibility enhances security and prevents misuse of the gold bars. Tether Gold and Pax Gold only mint fungible tokens, making it impossible for users to verify one-to-one correspondence or prevent misuse of their gold reserves for other purposes.
  2. Gold Dao provides a more practical payment token with GLDT, as each token is pegged to 0.01 gram of gold, making 1 GLDT approximately $0.66. In comparison, XAUt and PAXG are pegged to 1 ounce of gold, making each token around $2000. This difference in unit size makes XAUt and PAXG less practical for daily use, especially when making smaller transactions like buying a coffee for $4.80.
  3. Gold Dao clearly distinguishes between the two utilities of gold: store of value by GLD NFT and payment token by GLDT, effectively allowing individuals to act as their own central banks. Users can always mint GLDT by swapping their GLD NFT and vice versa.

To answer your other questions. Yes, KYC is implemented on Yumi. Yes, liquidity is very important for the massive adoption and will be provided on the major exchanges.

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Thank you for your response. I have three more questions.

How exactly does a Gold NFT holder apply for a physical gold withdrawal? I imagine that it is not often that physical gold is actually exchanged, but it would be more reassuring to know a realistic and concrete process.

I read somewhere that you carry insurance in case of theft, etc. Who is the policyholder in this case? Who is the policyholder in this case, Gold DAO?

I understand that the Gold NFT is locked in a smart contract when converted to a phase 2 or 3 token. If those Gold NFT are stolen, what happens to the exchange for physical gold? The exchange will be suspended, what is the compensation? Will this be decided democratically by the Gold DAO?

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What is the difference in price between buying gold directly and buying a GLD NFT?

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Presumably if all else fails you can redeem the gold bar and sell it at the nearest bank - if you can carry it. :wink:

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If you can exchange a GLD NFT for a real gold bar, wouldn’t the price be the same?

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Hi hokosugi ,
Gold NFT holders can apply on this link to withdrawal for physical gold
www.bas.tech

The process is 1) fulfill information template 2) ID verification 3)receive quote and accept or not 4) paiement 5) receive the gold.
The price can be high , in general its not interesting for small weight.

The policyholder is Bochsler Assets & Securities

Knowing its fully on blockchain it’s mainly impossible to stole an NFT except if you share your seed phrase or if your wallet is no more secure. But even if that happen the ID is verified before exchange for physical gold. So if the ID is not correct , there is no exchange. But you are responsible to keep your wallet safe.

Hope that’s help !

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you need to add the cost to redeem it . It can be different depending of your country , time , weight etc

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The main differences for me are :

  1. the price , GLD NFT offer a very competitive price comparing to the market. You can compare with other seller of gold bars.
  2. The gold bars are already insured and stored . You don’t have to spend time and money to take care about it
  3. The gold come from METALOR with the best production and quality standard.
  4. you can buy it and sell it directly from your computer, you don’t need to go to a store

There are also a lot of other advantages . You can read the white paper available on yumi if you want more details :slightly_smiling_face:

Happy to help if needed :blush:

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Thank you very much for the reply !! I’ll share an image with you to see if I’m doing the math correctly… I’m missing some values ​​that I didn’t find, to complete everything… like % of rewards

image
image880×549 14.5 KB

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I think the speed of adding gold and removing gold from the treasury is going to affect the price greatly. Correct me if I am wrong.
When there is more demand, GLD’s price will be higher and someone will be incentivized to add real gold bars and then sell them to realize profit.
When gold prices are going down quickly, fewer will want to buy it and its price should be lower than the gold price. Then someone is incentivized to withdraw bars from the treasury and sell them to realize profit.
In non-volatile markets, all will be relatively okay.
So how long does it take to add and remove gold bars? 10, 20 days? Perhaps there will be traders who can do it faster? Or someone will be trading options to sync the prices more? Otherwise, the price of GLD will be the predicted price of gold after 20 days + fees + security risks.

The equation becomes pretty interesting when someone tries to create GLD stable coin with liquity algorithm or leverage trading contract. Then small delay/speed up in how the organization adds and removes from the gold treasury will probably get orders liquidated. Also, if a trader is ‘whitelisted’ and allowed to deposit/withdraw faster than others, that will disincentivise more traders doing it too and will allow that one trader to control the price.
I think, if I want to invest in gold long-term through the IC, the best option is buying the NFTs unless GLD price is lower and gives me a better offer. If I want to send a friend a few $ in GLD tokens, then GLD makes more sense.
Just some thoughts and fears. Feel free to explain where I may be wrong.

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