The Digital Gold Program (POD) proposes an alternative payment system via cryptocurrencies created by BRX LTD, having as a reference the price of gold and made available through a private blockchain, the CLO Blockchain.
POD is managed by BRX LTD and its purpose is to obtain the cryptocurrency users loyalty to BRX LTD’s comercial partners, allowing the buying and selling of services and products within the partners digital platforms to be mediated by BR2EX7.
It is worth mentioning that POD intends to connect all credentialed partners, making BR2EX the currency of an alternative crypto ecosystem for the circulation of wealth.
Beyond BR2EX, it will be possible for the commercial partner to use Dapp FortKnox, na automatic liquidation of cryptocurrencies’ transactions blockchain system that diminishes the time and cost of operations.
BR2EX is defined as a credit of systemic nature utilized by BRX LTD’s commercial partners as a means of products and services exchange offered within their digital platforms, respected the POD terms. The exchange partner who adheres to POD must allow the BR2EX currency to be used as the platform’s main payment medium and it will be able to create special discounts for the use of BR2EX, or other sales allowed by POD.
When forming the commercial partnership, the DLT exchange will install the POD in its platform and will be able to require to BRX LTD the amount of coins necessary to maintain the exchange system within the platform. The DLT exchange partner will make available to the users BR2EX coins as a form of credit for the platform’s internal usage, receiving fiat currency deposits as a counterpart.
On its turn, BRX LTD will be remunerated for the amount of coins made available to the partner, having as reference a standard value per virtual coin. Meaning that the price of POD’s instauration in a platform depends greatly on the number of coins that will circulate in the partners platform, by doing so it democratizes the access to BR2EX for big and for small exchanges.
POD’s instauration allows the users to enter the DLT exchange (partner company) and to connect in it through their client credentials, utilizing only BR2EX to exchange for other crypto assets.
The goal is that all the platforms exchanges must occur using BR2EX, not fiat currency. Thus, all exchanges within the platform shall be made entirely crypto to crypto (ex.: BR2EX – BTC).
In the scenario where the partner closes, by any reason whatsoever, the partnering DLT exchange must return all the BR2EX in its possession, receiving as a counterpart an indemnity in fiat currency based on the BR2EX standard value.
The relationship between BRX LTD and the commercial partner, POD’s usage and the BR2EX’s inclusion in the digital platforms obeys the following graphic:
The DLT exchange can start the crediting system or the exchanges within the platform using BR2EX in the POD’s activation moment. It is worth mentioning that BRX LTD will not hold any relationship or obligation to the partners platform users. This crediting system through BR2EX will work in the following manner:
Moreover, the DLT exchanges will have the opportunity to rescue its BR2EX coins for the reference price stipulated with BRX LTD in case it closes, among other hypotheses stablished in the contract. It should be observed that such right is exclusive to the DLT exchange and it is consequential to the partners contract, not being extended to the platforms users.
In day to day transactions, BR2EX’s price is defined by the market.
However, the comercial partners discretion for determining the distribution and the collection price is relative due to the consideration duty towards the reference price that is published, and periodically updated by BRX LTD, manager of the Digital Gold Program (POD) payment system.
This scheme is similar to the commonly used by the more famous stablecoins, and proved itself quite efficient in what regards keeping the virtual currencies’ price stability in acceptable levels. The difference is that the incentive system for the price maintenance is based on a chain of trust between the partners culminating in the issuer, BRX LTD.
The BR2EX’s reference price definition, periodically published by BRX LTD, must be considered by the partner as the “fair value” or “standard value” to BR2EX, it is appraised according to the company’s own methodology and has as a reference the “Guarantee Fund” (gold reserves) that BRX LTD possesses to cover the partners closing costs or other measures against illiquidity. The standard price defined by BRX LTD will be, for that reason, the coins paid price in the event of BR2EX’s return to BRX LTD.
The methodology used to fixate the BR2EX’s fair price is based on, but not limited to, the result of BR2EX’s reserved volume in gold divided by the number of coins in circulation, leaving out the maintenance costs of the system. The systematic will be duly disclosed in a document published by the BRX LTD’s communication channels.
Despite the usage of BR2EX’s standard price, defined by BRX LTD, not being mandatory as a reference to BR2EX’s availability and collection by the partners, it is advisable to use such a price as an economical security and financial liability measure.
The determined value is based on the gold reserves and is updated according to the gold’s gram quotation at the time, being the guarantee limit between BRX LTD and the partner in the event of the partners closing.
Thus, aware of the existence of a coin guarantee fund, the Exchange partner will have confidence in maintaining the value of the currency at stable levels, allowing the market to behave accordingly.
7 BR2EX is conceived by the Laws of Malta as a Virtual Financial Asset - VFA, as clarified in the WP.