AUS & AGS are ERC-20 tokens on the Ethereum blockchain. An ERC-20 token is an Ethereum smart contract that follows a standard protocol for representing custom tokens on the blockchain. Specifically, the contract must declare basic token characteristics (name, symbol, decimal precision), track the total number of tokens, track a token balance for each Ethereum address, and permit address owners to transfer portions of their balance to other addresses.
The benefits of building on Ethereum and ERC-20 include:
- The security and availability guarantees of one of the largest global blockchain networks (Ethereum) and its proof-of-work model;
- A simple and familiar smart-contract pattern;
- Publicly verifiable token supply, account balances, and on-chain procedures;
- Ability to integrate with other smart contract applications like distributed exchanges, distributed apps, and swap contracts;
- Broad adoption by crypto stakeholders such as exchanges, crypto asset organizations, institutional investors, and retail users;
- Reduced dependency on any single authority due to decentralization; and
- Access to a broad market that includes all individuals with an internet connection.
AUS & AGS is only available on Ethereum today, but it may also be launched on other chains in the future if there are compelling benefits.
Upon metal being secured the bars (weight, brand, serial number) are entered into the database.
The minting software reads that database and mints the new tokens corresponding to that metal added and updates the database with the TXID for each bar.
Ainslie Wealth then distributes those tokens to exchanges on market demand or directly to OTC customers.
Upon a token holder redeeming their tokens, Ainslie Wealth will burn those tokens through the burning software, which sends them to the burn address and updates the database with the bars removed and TXID for the burned tokens.
The corresponding bars are then removed from Reserve Vault and handed over via Ainslie Wealth.