Making gold as easy as money by embedding 5000 years of trust into a new digital currency. Aurus combines the decentralized nature of gold with the transparency and immutability of smart contracts on the blockchain.
The Aurus smart contracts are one of the most complicated engineered contracts and will be the basis of a broader horizon where we will be implementing DLT technology into the entire commodity trading value chain. Aurus contracts will be the standard that enables a new generation of digital assets and contracts creating decentralized and transparent commodity markets.
We interviewed the Founder of Aurus to discuss more about their business.
Aurus is building a derivative based token offering that enables the tokenization of a valuable asset – Gold. Can you explain a bit about how it works?
The first step in answering this question is to explain exactly what we’re building and how it works. Our main product is, as you mentioned, a 100% gold-backed cryptocurrency called AurusGOLD (AWG). AWG, in order to be a sustainable gold-backed currency, has a dynamic transaction fee to cover the cost of money. A part of this fee is distributed to the holders of our second token: AWX. AWX is, therefore, a revenue sharing stream for people who want to invest in the trading of a product such as AWG.
To build a successful gold backed cryptocurrency, it’s important to avoid any issues of liquidity, meaning gold supply must not be a problem. In order to achieve this, we have a slightly different approach than most companies in this space. We don’t own any of the gold backing the AWG at any point. We intend to partner with big industry players to supply the gold and receive AWG which they sell on the market through similar channels of selling bullion gold, as they already do.
This makes us just a software layer that ensures the whole system is fair, functional and provides the best features to holders of AWG and AWX. The distribution of AWG onto the market is done by the current players in the gold and finance world, from crypto funds to gold traders, all who have market making capabilities. That is the first floodgate of AWG onto the market. From them, AWG moves to exchanges and so on down the line, through players which all carry the responsibility to perform KYC and AML, naturally.
You have essentially solved the age-old problem that gold is hard to carry. What do you think will be the effects of the increased liquidity and increased velocity on the global prices of Gold?
We expect the effect to be our main use case: gold becoming truly open to masses. Overall liquidity will increase; price will probably stabilize even more. I even expect there to be a long-term, heavy impact such as reducing the potential energy of a financial crisis since people now have a viable alternative to their own currency.
Transaction fee on the usage of one token (AWG) is partially directed to your second token (AWX). What is the rationale for that?
Vested interest in the ecosystem. I truly believe that blockchain technology can bring about a change to the way shares work for companies. AWX is cool because it’s not a profit-sharing mechanism, like a traditional share or a security. AWX distributes revenue, meaning Aurus as a company cannot directly affect the income holders of AWX have. That solely depends on the market cap and the trading volume of AWG, which we, as a company, do not even sell, it’s completely free and up to the market.
I believe this is a really interesting way of doing business because of the impact it has on companies. It implies calculating business models and revenue streams differently, I would argue, more fairly. All the while, since it’s a token, it’s easier to transfer, more transparent and it can be used to spread the vested interest in your ecosystem to the whole world, one thing which I’d be very interested in doing over time.
Further information on Aurus and its progress is available at https://aurus.io
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