Gold Standard DAO | Creating a Sustainable Platform with Dynamic Taxation and Gold Standard
ZURICH, SWITZERLAND / January 25, 2022 / Gold Standard DAO is cruising high after partnering with LODE and completing its first presale. A sustainable tokenomics and tax structure followed by the highly successful presale to create a solid foundation for the platform to build further, Gold Standard DAO or GSDAO aims to leverage the stability of gold and help people secure their money, making it immune to market fluctuations and disturbances. The users will buy the $GSD token, but the tokens will be backed by real physical gold kept safely in special vaults. The project is launching soon, public sale followed by mainnet launch will take place within Q1 2022.
A Solution for Trading in Gold
Gold trading and investing against the metal has its issues, which the Gold Standard aims to solve. It decentralizes the entire system and turns it into a self-governing environment leaving out the policymakers from deciding the fate of the value of gold at any point.
No Centralized Authority
With the Gold Standard DAO, gold does hold its dynamism in terms of price, but it happens without the intervention of any single centralized authority. With GSDAO and blockchain integrated into this system, users enjoy more control over their investment and enjoy a better outcome.
As more users add tokenized gold in the treasury, the total value locked (TVL) increases, and the Annual Percentage Yield (APY) drops. When people sell from the treasury, it creates a dynamic impact leading to an increase in the APY, attracting more investment. This stabilizes the system and prevents it from going up and down too much.
Working Of GSDAO
Each $GSD token is backed by 1 milli-ounce of tokenized gold in the treasury. The platform’s protocol is created in a way that the $GSD’s fair traded value is more than the intrinsic value of gold kept safely in the vaults.
Minting New $GSD Tokens
New $GSD tokens will be minted only when there is enough bullion to support the new tokens. This will make sure that there is no unwarranted minting of the tokens that can easily reduce the price by way of supply and demand disequilibrium. The Gold Standard DAO will launch within Q1 2022 on Avalanche initially then migrate to the Syscoin network when the Syscoin layer 2 is ready in a few months.
Bonds and Staking on GSDAO
Staking is a primary activity users can undertake to earn more $GSD. The $GSD tokens can be staked to earn rebase rewards, which in turn, comes from the bond sales. The users will stake $GSD in the predetermined protocol, and they will be rewarded according to the rates set by the monetary policy.
Introducing Dynamic Buying and Selling Tax
The selling tax is implemented to ensure the balance in the ecosystem, preventing losses for the investors even after some users decide to pull back their investments after profits. As it’s a decentralized system, Gold Standard DAO cannot stop the participants from withdrawing their contributions.
So, a better way around is to introduce a tax that will feed the withdrawn portion back into the system. The purpose is to ensure that users have the freedom to decide what they wish to do with their investment while maintaining the treasury health.
How will the Buy and Sell Tax Be Implemented?
Both types of taxes are there to protect the treasury health. The sell tax will increase when the price falls while decreasing the buy tax. Both types of taxes are dynamic and will adjust according to the position and health of the platform.
When the buy tax is less, it will incentivize buying, bringing more investors as some have decided to leave.
Gold Standard DAO has worked to build and run sustainable plus longevity-oriented protocol. GSDAO further aims to innovate and evolve its protocol and its functioning by expanding the treasury asset options.
Interest Bearing Tokens:
In addition to digital Gold (AUX), the protocol will allow the acceptance of Interest Bearing Tokens into the treasury. Interest bearing assets are fully collateralized representations of their own respective cryptocurrencies while at the same time providing users with a base interest rate just by holding them.
The plan is to organize weekly / fortnightly NFT auctions with NFTs created by a few renowned artists to strengthen the treasury. These NFTs should be unique and very limited. Participants can only bid on the NFTs by using $GSD tokens. A big percentage of the $GSDs raised from the NFTs will go straight to the treasury. The idea is to incentivise purchasing of $GSDs and increase buying pressure while benefiting the treasury.
More innovative features will be added to the protocol to introduce additional use cases to benefit the treasury and protect the project against inflation.
To provide the required momentum to the entire system, GSDAO has partnered up with LODE and Syscoin Foundation.
LODE is an audited/registered Swiss corporate legal entity and is the primary supplier of AUX digital gold to the GSDAO treasury. Each AUX coin is backed by one milligram of 99.99% investment grade, vaulted and insured gold bullion. LODE then mints each AUX Coin and sells those coins into the global marketplace for sending, spending, trading, and storing value.
The Syscoin network is a decentralized and open source project founded in 2014 by the founders of Blockchain Foundry. Syscoin’s value is in its security, speed and close ties to the Bitcoin codebase with scalability in mind and flexibility of the Ethereum chain.
Working on the principles of DAO, the Gold Standard DAO takes an innovative turn and will become the first platform of its kind on Syscoin. The users buying the $GSD token will get an assurance for their investment via real physical gold pegged to the tokens and reserved in vaults across the globe. The users will benefit from a new smart chain along with enjoying a stable currency platform getting assured returns on their investments.The Gold Standard DAO is set to launch within Q1 2022, exact dates will be announced on its website and social media platforms.