In our pursuit to launch the DinarCoin token, we faced a huge number of hurdles, both technological and economical, but we came out successful in our endeavors. We finally and successfully create the gold and blockchain-based DinarCoin which is actually pegged to the worldwide gold spot-price. Many cryptocurrencies were (and still are) dealing with the effects of price volatility and we had the bright idea of linking the value of the cryptocurrency with the value of a real physical commodity to lessen some of the volatility. With gold being regarded as a safe-haven asset that most investors revert to in times of inflation and economic hardships, we thought it best to tie our tokens to the value of gold. By combining the stability of gold and the security, speed, & flexibility features of blockchain, we ushered in the birth of a new and unique digital currency, the DinarCoin. The purpose of this article will be to explore the structure of the DinarCoin to enable you to appreciate the technological expertise that went into the creation of the token.
The Structure of the DinarCoin
The DinarCoin can be obtained from a holder of the token on the open crypto-market or by obtaining newly minted DinarCoins from liquidity providers. Liquidity Providers or LPs as commonly known, are organizations that undertake different functions such as storing, securing, and ensuring physical gold bullion. On the other hand, DNC tokens can be minted by DinarDirham’s DAO (Decentralized Autonomous Organisation) by processing XAU to the 1:1 value of the DNC through a MT4 Master Account. As long as a DNC token is active, the corresponding value of XAU will be held in escrow, such that STP is 1:1 to the liquidity provider and available to be liquidated anytime when orders are closed.
Whenever a DinarCoin is created, it is publicly registered on the Ethereum Blockchain. This means that the total value of DinarCoins in circulation can be confirmed easily by anyone; An audit can also be conducted against the total amount of XAU held in escrow or by liquidity providers. As stated earlier, the value of the DinarCoin is pegged against the worldwide gold spot price. Other than that, the DNC can be used for various purposes such as trading, investing, and making payments.
In addition, a DNC or a fraction of the DNC can be sold on the market, exchanged to Bitcoin, withdrawn from DinarDirham through a request, liquidated through DinarDirham’s DAO (subject to a minimum value of one DinarCoin), or used to purchase the Gold Smart Contract. A Gold Smart Contract is an Ethereum smart contract deployed upon the Ethereum blockchain that signifies the ownership of physical gold bullion stored in the vaults of our liquidity providers. Some of our liquidity providers include Saba Capital and International Business Futures (IBF). Some of the gold providers include ABX and Triplenine GoldWorld Gallery Sdn Bhd.
Once the owner of a DinarCoin decides to liquidate it through DinarDirham, the same amount of XAU will be closed by the DinarDirham DAO out of the escrow or the liquidity provider. That DinarCoin then gets completely destroyed. The liquidated amount then gets transferred to its rightful owner minus the withdrawal fee thereby ending the liquidation process. The cash settlement process takes less than a minute using the Ethereum’s public blockchain technology. It significantly reduces storage costs, direct taxation, and all the headaches that are associated with the commodity to cash conversion process.
Currently, we are working tirelessly to ensure that DinarCoin becomes the perfect currency. We want to make DinarCoin theft resistant, durable, non-counterfeitable, inflation proof, decentralized, anonymous, open source, and spendable. DNC tokens will also be used as payments at certain merchants that DinarDirham will collaborate with soon.
How to Join DinarDirham
You may be new to the company and have no idea of how to acquire the DNC token. Below is a step by step guide on how to join.
Step 1: The first step to joining us and investing in our gold-backed cryptocurrency assets involves obtaining a blockchain-based cryptocurrency such as Bitcoin or Ether, or any other that the DinarDirham wallet (or the Blockchains.my – BCMY wallet) will accept.
Step 2: The next step is to register for a DinarDirham wallet (or the BCMY wallet), one that can be used for buying, selling, and minting DinarCoins. The DinarDirham wallet (or the BCMY wallet) can also be used for storing, using, and trading other supported cryptocurrencies.
Step 3: Make an order with one of our listed liquidity providers and gold holders. (Our LPs and Gold holders have been mentioned above in the article).
Step 4: Head back to your DinarDirham wallet for minting or ledgerising your DNC tokens.
Step 5: Your DNC tokens will be publicly recorded on the Ethereum blockchain platform and just like that you will have received your DinarCoins.
Cryptocurrencies almost seem to be the guaranteed future of currency that will eventually replace the traditional conventional meaning of currency. They are just a few steps away from being completely accepted and adopted globally, however, price volatility remains a huge headache for most systems that try to incorporate them. We, however, remain optimistic about the future of the DinarCoin. We believe that the DinarCoin will have a great impact on the personal finances of a growing user base. This will be supported by the fact that DinarCoins have low volatility and remain as scarce as gold itself. Gold is also a safe-hedging asset and thus DinarCoins will also take on this capability while eradicating the costs associated with storing and handling physical gold. They are real digital gold assets. If you fancy the idea of the DinarCoin along with our supporting digital wallets, make sure to check them out on our official DinarCoin website for more information.