Gold DAO, started by DAO.Link, is an innovative project that aims to digitize and democratize the value of gold through #Blockchain technology. This initiative fuses the timeless appeal of gold with an innovative method for people around the world to exchange physical gold safely and fairly, bypassing traditional banking systems.
For more than 5,000 years, gold has been deeply connected to humanity. It is not just a metal; It is timeless, corrosion resistant and very malleable for craftsmen. Its rarity in the depths of the earth adds to its appeal, historically associated with wealth, prestige and royalty.
Gold symbolizes lasting value and craftsmanship in our collective history. However, its impractical physical weight led to the abandonment of gold as a physical currency.
Web 3.0 and blockchain technology can address this problem and improve existing solutions. In fact, gold can be digitized into blockchain-based tokens, making it highly portable and easy to transfer, while combining the attractiveness and store-of-value characteristics of gold with the power of decentralization, the transparency, transferability and security of blockchain technology. A long-awaited wedding.
That's where Gold #DAO 's role takes place.
Gold DAO, started by DAO.Link, builds on the achievements of the ORIGYN Protocol and Yumi. Leveraging the Internet Computer Protocol (ICP), this collaborative project aims to revolutionize the role of gold in the digital and ultimately financial world.
DAO.LINK has collaborated with innovative companies and digital gold pioneers including ORIGYN Protocol, Yumi Marketplace, DFINITY Foundation, Bity, Metalor, Loomis, KPMG and Quantum Agency, along with highly skilled individuals. Together, they are reshaping the way we can transact gold around the world, making it more accessible and secure for everyone.
The motivations behind Gold DAO are twofold. Firstly, it aims to create a secure and fully compliant product based on physical gold existing on the blockchain, enabling a liquid medium of exchange and harnessing the benefits of gold while addressing its main drawback: lack of transportability. .
Secondly, it seeks to leverage the security of gold to create a stablecoin pegged to the USD and also 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. We ensure security by having the physical gold insured and stored at Loomis or Metalor in Switzerland, which is audited quarterly on-site by KPMG. The gold has a refinement quality of 99.99% and is obtained by Metalor, a world leader in gold refinement.
We are leveraging the unique technology of Internet Computer Protocol (ICP) to establish a Serving Nervous System (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 will be available to everyone. This ensures project continuity, backed 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 earn governance tokens (GLDGov), allowing them to participate in the governance of the project and share in the project revenue created by The Gold DAO.
The Gold DAO SNS consists of three phases:
Phase 1: ORIGYN and Yumi have already completed the primary phase. A digital product representing physical gold that is secure and audited in Switzerland. This involves the creation and issuance of GLD-NFT; NFTs tied to physical gold bars held in highly secure storage and identified by a serial number. Technically, these NFTs are based on the ORIGYN protocol, a Real World Assets (RWA) and next-generation NFT protocol. GLD-NFTs are indexed on the second London day and can represent 1g, 10g, 100g or 1kg of gold.
Phase 2 – This phase aims to introduce fungibility into GLD-NFTs, thereby 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 maintain the private key that will allow code to be sent and update the smart contract that operates the GLD-NFTs to the GLDT exchange, transforming them from non-fungible assets to fungible assets.
GLD-NFTs are securely stored in a smart contract and the GLDT creation rate will be directly linked to the value contained 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 gold prices.
Phase 3: In this final phase, the commodity nature of gold becomes crucial as it paves the way for the creation of a gold-backed stablecoin pegged to the US dollar, initially; USDG, gold-backed stablecoins, will not only be limited to USD currency in later stages. The funds raised by SNS will finance the development of this stablecoin. Phase 3 is the starting point of revenue generation.
The Global Tokenomics of the Gold DAO and the stability mechanism of the USDG have been theorized by Dr. Yulin Liu, a monetary theorist who currently serves as a senior economic advisor at Chainlink$LINK . He was also chief economist at Liquity, visiting economist at the Bank of Finland and professor of economics at HUST.
GLDGov SNS holders within the Gold DAO enjoy multiple benefits.
In Phase 3, they receive income generated by the stablecoin (Phase 2, a 1-to-1 exchange, generates no fees).
These holders actively participate in decisions related to 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 #tokens GLDGov provides indirect exposure to digital gold assets, the value of which may increase as the Gold DAO project becomes successful. These benefits collectively offer SNS holders financial incentives, a voice in governance, and a stake 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, providing 500 million $OGY tokens. These 500 million OGY dollars will be staked over 5 years, the staking rewards will be allocated to SNS GLDGov holders monthly.
50% of all this will be distributed over 5 years. The other 50% will remain within the SNS, providing income to the DAO to support further development. Let's not forget that $OGY is at 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 whitepaper and tokenomics will be published very soon on all our platforms. We welcome questions and comments and always seek constructive and thoughtful community engagement. A special reward will be dedicated to valuable contributors.
If you are interested, please contact us with your details here: info@golddao.org
