Can somebody explain to me like I am 5 how the whole gold minting process works for this coin? Still slightly confused.
Are the transaction fees used to purchase the gold every X number of weeks? Thanks for clarifying.
Are the transaction fees used to purchase the gold every X number of weeks? Thanks for clarifying.
Minting converts investments (USD, EUR, ..., soon BTC and ETH) into new gold and new Xaurum.
1. Invested money is spent to buy physical gold bars.
2. New Xaurum are issued at production price and backed by gold up to the level of all the rest existing Xaurum.
3. Since the production price is higher than the price of gold needed to back new Xaurum, there is a quantity of gold left.
4. This quantity of gold is delivered to the community of holders as golden dividend.
5. This is how the quantity of gold owned by every Xaurum is increased.
Burning is separate process that also increases the quantity of gold owned by every Xaurum.
Burning destroys Xaurum and decreases the number of Xaurum in circulation. The quantity of gold stays the same.
The result is obviously more gold owned by every single Xaurum.
One of the examples is transaction fee. Every transaction on Xaurum blockchain destroys 0,5 XAUR.
Burning will be much more important in the future.
Both minting and burning processes are smart contracts. The code in public.
I hope this helps.
Excellent explanation! Once you understand this concept Xaurum, you can see how well the whole thing pledged.
