GODL token on Dig Chain

[waspcartel]

GODL token

Prepared for: Notional Labs
Prepared by: William Gray, Marketing Director
3 May 2022

Proposal abstract:

A gold-backed stablecoin in Cosmos, on a CW20 token on Dig Chain. An ICO will be conducted in Cosmos to raise money for the gold-backed token, which will then be spent on Gold, with a small percentage going to Notional for building the token. Successive funding rounds can later be completed in short periods (to protect against volatility in the gold market) to raise more funds to buy more gold. Gold will be stored with a licensed and insured vault. The name GODL is a play on the term HODL.

GODL price will be pegged to one ounce of gold (spot price at time of writing = $1,858) .

PROJECT SUMMARY

Objective
To create a gold-backed stablecoin in Cosmos that people can use as a hedge against market volatility. The token will be the only one of its kind in Cosmos and will thus likely gather attention and demand quickly.

Goals

• To test the market for demand for a gold-backed stablecoin
• To bring more value to the parent Dig Chain (gas fees paid in $DIG)
• To bring more value to Cosmos by providing the option to buy gold with crypto
• To set the stage for further stablecoins backed by silver and other precious metals.

Solution

• Create a CW20 token on Dig Chain
• Use initial liquidity from (Bank/Osmosis)
• List initial token on Osmosis to gather attention
• Launch an ICO to raise funds to buy more gold
• Use the proceeds to buy gold (stored in vault, secure, insured)
• Perform successive funding rounds in future to increase supply

Project Outline

• The supply will only ever equal the amount of gold purchased so it is backed pound-to-pound. GODL token will require $DIG as gas to work.
• Secure parter to provide initial liquidity (to prove concept + gain exposure)
• Create CW20 token and list on Osmosis DEX, et al.
• Raise funds in gold funding round
• Use funds to purchase gold from supplier (already have supplier)
• Issue tokens to wallets
• Perform successive funding rounds
• Expand to silver stablecoin

Project Sustainability

Gold sold during ICO phase will be priced slightly above market value. This is normal practice when buying gold at retail (supplier buys at market rate and sells at small increase to make a profit). The small increase will pay for Notional's development on the project.

This project is one of several that can be launched on Dig Chain to increase its use-case and thus increase the $DIG token value. This will benefit Notional in the long run.

Details:

Details

• Supplier can be paid in US-backed stablecoin
• No VAT on gold bullion
• Storage: Vault in London - fees are ￡65 (GBP) per month for ￡100,000 worth of gold or over. Stored with Brinks.
• We are able to buy gold at wholesale price: confirmed
• Holders of GODL could redeem the real gold and have it posted to them - they would need to give one GODL token to receive one ounce of gold, two GODL tokens to receive two ounces, and so on. This would be standardized.
• Redeemed gold will come in the form of one ounce gold bullion bars.

[waspcartel]

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[Golden-Ratio-Staking]

Love this idea, personally. $DIG real estate can be used as a safe haven/hedge against inflation. Generating yield in an asset class usually completely separate from crypto volatility. Adding an asset backed commodity ($GODL) that uses $DIG for gas makes sense.

Would like to know more about design idea as well. Like could this lead to local $DIG chain stablecoins in native currency for legality and use case purposes as well?

Rent in a real estate development could be paid out to fractional NFT investors in local stablecoin/GODL after being converted. Gas in DIG. Currency exchange built on $DIG. ETC ETC.

[waspcartel]

I think we could explore the idea of having local stablecoins - it might even be necessary in some instances. The idea of being able to buy property with gold I think could be very interesting.