AgAu tokens are the true alternative to fiat currencies and CryptoFiat.
What is AgAu?
AgAu is a Peer-to-Peer, Electronic Money System backed by Silver (Ag) and Gold (Au) in Switzerland”
AgAu is the digital representation of inspected, audited and allocated London Bullion Market Association (LBMA) Good Delivery standard gold and silver bars stored in secured private vaulting facilities in Switzerland. At any time one can trade or redeem their tokens for the physical precious metal.
AgAu tokens are backed by 1gram of physical and allocated gold (Au) in the case of AGLD and 1gram of silver (Ag) for ASLV.
Is the physical metal allocated and what are the implications of allocated precious metals?
Yes. AgAu tokens allow for Direct Ownership of Allocated Precious Metals.
Most of the precious metals trading today are not allocated. Unallocated gold is often used in the case of gold funds, ETFs, or synthetic products composed of financial derivatives. Unallocated gold represents a position with a counterpart where the client is a creditor of the gold but does not own it. By contrast, allocated gold is the direct ownership with no accounting liability. Meaning that the token holders have full control of the assets and no counterpart risk.
Are AgAu Tokens regulated?
AgAu uses the public Ethereum Blockchain platform. Ethereum Blockchain is the most decentralized Blockchain with the largest ecosystem.
Blockchain technology uses cryptographic security to secure access and transactions within the distributed network. Transactions are verified in a matter of seconds in an immutable ledger that provides full transparency and security to all participants.
The Matching Ledger is publicly available at all times allowing anyone to verify the integrity of the system by proving that no AgAu token has been created without having first proven the assets. The Matching Ledger therefore ensures that the number of tokens outstanding balances with the correspondent assets 1:1.
In order to further ensure security AgAu uses the Smart Contracts. A Smart Contract is developed with predefined conditions in the form of electronic contracts written in code. Straight through processing of Smart Contract allows to automatically update and execute payments or actions when all specific conditions are met.
Who can buy and sell AgAu Tokens?
AgAu tokens will be available to trade between crypto wallets through exchanges and decentralized applications. Like any other ERC-20 token, owners will be able to store them in Ethereum wallets.
Is it possible to buy AgAu Tokens with fiat money?
No. AgAu tokens will be listed on the Ethereum platform and can be bought and transferred by crypto-to-crypto exchanges. Users will be able to store the Tokens in their Ethereum wallets.
Why is AgAu charging storage fees?
AgAu tokens allow for Direct ownership of allocated precious metals. This is an absolute priority for AgAu, as our mission is to offer the most “primitive” base layer to own pure quality (LBMA) physical precious metals directly.
There cannot be direct ownership of allocated precious metals without storage costs. In the case of some of our competitors claiming “Allocated precious metals” the ownership structure is not direct but through a company or trust. Thus the precious metals are leased, swapped or collateralized in order to produce income covering the cost of storage. Therefore representing a position with a counterpart where the client is a creditor of the gold not the owner.
How does the storage fee work?
The storage fee is taken on the basis of how much time the gold token has been held in order to avoid unfair distribution of the storage facility payments among users.
Upon sending or receiving transactions, a storage fee is calculated and taken for the time lapsed since the last transaction timestamp.
To ensure the storage fee is collected, AgAu can bill the storage fee pending directly over a set of static accounts that have not transacted for the last month. The sum of pending storage fees is sent to the AgAu wallet in order to pay the vault facility once per month.
Can AgAu token holders redeem their coins for any amount of physical metal (Gold & Silver)?
Once the amount of AgAu tokens owned are equal to the entire gold / silver bar, the customer can redeem their tokens for a physical gold / silver bar. As a result, AgAu gold and silver tokens solve the challenges of today’s monetary system by allowing secure and portable access to gold for all.
Where are the physical metals (Gold & Silver) represented by AgAu Tokens stored?
AgAu tokens underlying will be stored and insured in secured vaults primarily in Switzerland and Liechtenstein. Our Partners are listed in the “Partners” section.
How can the users prove that the assets are backed by LBMA quality allocated physical precious metals?
Through AgAu’s Matching Ledger, AgAu establishes the direct property of the physical metal which makes it much easier for users to audit and inspect their own possessions. Through the Agau System, the user has 7 layers of certification proving that the assets are backed by allocated LBMA quality physical precious metals:
- The first layer is that During the Token Generation Ceremony (TGC), all assets need to be proven by the Vault issuing a Stock report
- In addition, an independent Auditor or Assayer must certify both the quality and quantity.
- Also, a Notary must sign therefore providing an extra independent party to reduce operational risk as well as making sure that the legal ownership resides with the token holder
- A periodic audit (quarterly) will be conducted to insure the integrity of the data and physical holdings.
- All Data is Posted in the Agau Matching Ledger via an IPFS System (decentralised database) and the hash of the files (Unique reference) are posted to the blockchain somewhat pinned permanently preventing any possible tampering and rendering them immutable and verifiable.
- We will also be working towards “an open door policy” to allow users to appoint third party auditors of their choice in order to inspect and verify holdings at their own cost.
- Finally, as an ultimate verification, the user can request a redemption with Agau to receive his physical property and can verify empirically for himself that the bar he redeemed was part of the agau system and has been marked (as redeemed) in the Agau Matching Ledger.
What is blockchain technology and Why is AgAu using this?
“Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions duplicated and distributed across the entire network of devices participating in the said blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs, a record of that transaction is added to every participant’s ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT). Because the data is distributed over many independent devices, the blockchain eliminated the single point of failure typical of a centralised system.
Blockchain is a type of DLT in which transactions are recorded with an immutable cryptographic identifier called a hash.”
Blockchain technology uses cryptographic security to secure access and transactions within the distributed network. Transactions are verified in a matter of seconds in an immutable ledger that provides full transparency and security to all participants. This technology allows AgAu to provide an exceptional solution to ensure a decentralised trusted system. AgAu is a secure, flexible and cost-effective way to guarantee the possession of gold and silver as well as executing secure transactions.
AgAu is developed as an Ethereum-based ERC-20 token so that it has portability across the Ethereum blockchain’s extensive network of wallets, exchanges, lenders and other platforms.
AgAu gold and silver tokens solve the challenges of today’s monetary system by allowing secure and portable access to gold for all.
How can I ensure maximum security of my account?
As AgAu we have put great security measures to keep your account safe. For account logins, we follow a 2-Factor Authentication process with SMS and email confirmation. We recommend you to keep your AgAu registered email on a separate device other than your phone with the registered number which you receive SMS codes, this way you can achieve maximum security.
Is it possible to get in touch with AgAu through other platforms?
Yes. AgAu is active on several different platforms such as; Twitter, Facebook, Linkedin, Telegram, Instagram and Youtube. Feel free to reach out to us through any of these platforms and remember to follow our pages for further company news! For general queries email us at: [email protected]