Gold token: GLDT
As a bridge between physical gold and the digital ecosystem, the Gold project intro- duces the Gold token - GLDT. GLDT is a fungible token, fractionalizing the GLD NFT, bound to the value of gold. Each GLDT represents a fraction of a gram of gold, exactly 1/100th of a gram. These tokens are created through a minting process that swaps the GLD NFT with the equivalent amount of GLDT issued on the blockchain.
The GLDT are designed to be swappable with the GLD NFT representing the physical gold bars. Holders of GLDT can initiate a swap to convert their tokens back into the corresponding GLD NFT. This process is facilitated through a smart contract, ensuring a seamless and verifiable exchange between the digital and physical assets.
The process is as follows. Owners of GLD NFT can use the GLDT swap canister to swap their GLD NFT for minting GLDT at a ratio of 100 GLDT per 1 g of GLD NFT. Similarly, holders of GLDT can initiate a reverse swap of GLD NFT by triggering the swap canister to burn the GLDT and releasing the equivalent amount of GLD NFT to be returned. In general, there is a 1% fee on swapping from GLD NFT to GLDT and vice versa, which is allocated to the ORIGYN protocol and the gold issuer. However, this fee for swapping from GLD NFT to GLDT is waived for the first 100 million GLDT swapped. The elegance of this system lies in its inherent assurance of a fixed exchange rate, maintaining a con- sistent ratio of exactly 100 GLDT for every 1g of GLD NFT within the total supply of GLDT. Consequently, the value of GLDT is intrinsically linked to the value of gold, with 1 GLDT invariably equivalent to 0.01g of gold.
As the bridging of the physical gold asset to the digital world takes place through the GLD NFT certificates, GLDT is a purely digital smart contract that fractionalizes the non-fungible GLD NFT. This process brings various benefits, such as increased liquidity of the gold stablecoin and the option to send micro amounts of gold between peers. With 8 decimals for the token, fractions of a cent’s value of gold can be transferred at minimal costs.
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