IPMB staking to be launched November 21st 2024
Earn Discounts on Investment-Grade Gold by Staking IPMB Tokens
As the world begins to embrace digital assets, the adoption of tokenization is on the rise and is expected to hold a market of well over $1 trillion by 2030. Gold is an asset that can benefit enormously from tokenization. IPMB provides a solution for gold on the blockchain like no other. IPMB is introducing Globally Exchanged Metal Non-Fungible Tokens (GEM NFTs). Leveraging blockchain technology, GEM provides the lowest-cost gold acquisition in the world and guarantees no-fee gold ownership.
What is the IPMB Token? What are GEM NFTs?
The IPMB Token is a gold-backed hybrid utility and payment token. Unlike stablecoins, the IPMB Token is not a stablecoin. The price of IPMB fluctuates with the market but is always backed by gold and can be redeemed for the underlying gold, providing a floor value. However, as the adoption and utility of the IPMB token grows, a premium could develop, creating a digital token backed by gold—with a limited downside and potentially unlimited upside.
In essence, each IPMB Token is backed by 1 gram of 22-carat gold, verified through Agreed upon Procedures by Grant Thornton. IPMB Tokens can be used to access discounts on goods and services, as well as to access discounts to investment-grade gold through GEM NFTs when IPMBs are staked for certain periods.
GEM NFTs are digital representations of real, physical 24-carat gold bars. Each GEM provides ownership of a specified quantity of gold.
A GEM100 represents ownership of 100 grams of gold. GEMs are fee-free, providing a gold ownership solution with zero management or acquisition fees. On top of this, GEM holders may be given annual loyalty rewards, creating a positive-carry gold ownership solution.
How Staking IPMB Tokens Unlocks Up to an 11% Discount on GEM NFTs
GEM NFTs can be bought at a discount by staking IPMB Tokens – up to an 11% Discount. This is an 11% discount on physical investment-grade LBMA-certified 24ct gold.
In addition to the fee-free ownership structure, this discount offers significant savings on gold purchases, making GEM NFTs a more advantageous option compared to traditional gold investments.
How Does IPMB Staking Work?
Staking is a process where you lock your tokens for a specified period of time for a reward. In this case, staking IPMB Tokens earns you a discount on GEM NFTs.
Main points:
- Discounts up to 11%: The longer you stake, the bigger the discount.
- Guaranteed 1:1 Gold Conversion: If IPMB’s price drops below the price of gold, you still convert at a 1:1 rate, protecting your value and the intrinsic value of the IPMB Token.
- Price Appreciation Gain: If IPMB’s value rises above the price of gold, the conversion rate becomes value-based and not 1:1. Thus exchanging fewer IPMB Tokens for the same GEM NFT when the price of IPMB Token is high.
- Regardless of price, you must stake the same quantity of IPMB Tokens as the GEM NFT you wish to purchase. For example, to acquire a GEM20, you would need to stake 20 IPMB Tokens.
The core of the staking mechanism is to consistently provide an incentive to stake, regardless of the IPMB Token’s price. This ensures that even if IPMB trades at a large premium over gold, you are still incentivized to stake your IPMB Tokens.
Calculating the Discount
When calculating the discount, we begin with the staking periods as the baseline:
- 3-Month Staking Period: 2% minimum guaranteed discount on GEM NFTs
- 6-Month Staking Period: 5% minimum guaranteed discount on GEM NFTs
- 9-Month Staking Period: 8% minimum guaranteed discount on GEM NFTs
- 12-Month Staking Period: 11% minimum guaranteed discount on GEM NFTs
To determine the amount of IPMB Tokens required to convert into a GEM NFT, we consider whether the IPMB Token price is below or above the price of gold (per gram).
If the IPMB Token price is less than or equal to the price of gold:
We use a 1 token to 1 gram of GEM gold conversion basis, plus the applicable discount. For instance, if the IPMB price is below the gold price and an 11% discount applies, the conversion rate would be calculated as follows:
The conversion rate would be:
Number of IPMBs staked * (1 – Discount %)
Example: For 100 IPMBs, this would be: 100 * (1 – 0.11) = 100 * (0.89) = 89
Thus, 89 IPMB Tokens would be converted to gold to receive a GEM100. The remaining 11 IPMB Tokens from your initial stake will be returned to you.
If the IPMB Token price is higher than the price of gold:
In such instances, we convert on a floating value-based rate using the exchange rate below:
Discounted Gold Price = (Gold Price * (1 – Discount %)) / IPMB Token Price
The conversion rate would be:
Discounted Gold Price / IPMB Token Price
To calculate the number of tokens converted, we simply multiply the result of the above formula by the number of IPMB Tokens staked.
Example: For 100 IPMBs, IPMB Token price at conversion $85, and Gold (gram) price at conversion $80, this would be:
Discounted Gold Price = 71.2
Conversion rate = 0.8376
Thus, 0.8376 * 100 IPMB = 83.76 IPMB Tokens would be converted to gold to receive a GEM100. The remaining 16.24 IPMB Tokens from your initial stake will be returned to you.
* Note: All examples use speculative prices for illustration purposes.
Examples of Staking Scenarios:
Key Points in the examples below;
- Staking for 12 Months to get an 11% Discount
- Considering Gold is $100 per gram
- You stake 100 IPMB Tokens for a GEM100 (Worth $10,000)
| IPMB Price at the end of the period | Value of Tokens (100 tokens) | Is IPMB more than Gold ($100) | Conversion rate | Number of Tokens Converted | Value of Remaining Tokens | Total Value of GEM + Remaining Tokens | Net Gain |
| $50 | $5,000 | No | 0.89 | 89 | $550 | $10,550 | $5,550 |
| $100 | $10,000 | No | 0.89 | 89 | $1100 | $11,100 | $1,100 |
| $120 | $12,000 | Yes | 0.7416 | 74.16 | $3100.80 | $13,100.80 | $1,100.80 |
| $150 | $15,000 | Yes | 0.5933 | 59.33 | $6,100.50 | $16,100.50 | $1,100.50 |
| $200 | $20,000 | Yes | 0.445 | 44.5 | $11,100 | $21,100 | $1,100 |
| $1,000 | $100,000 | Yes | 0.089 | 8.9 | $91,100 | $101,100 | $1,100 |
Important Details about IPMB Staking
Monthly Limits: To protect IPMB’s gold reserves and adequately forecast available reserves, we limit the number of tokens that can be staked each month. Initially, this limit is capped at 200,000 IPMB Tokens. This amount may change each month based on supply and demand for staking. Importantly, the allocation is on a first-come, first-served basis, so there’s an incentive to stake early.
Token Distribution: Each month, GEM NFTs of various sizes are allocated to ensure a fair staking process. For example, with a monthly limit of 200,000, only 1 x GEM5000 may be minted, with the remaining allocation distributed among smaller denominations.
The limits on the amount a user may hold and the number of NFTs available each month are intended to give everyone a fair opportunity to acquire GEM NFTs. IPMB views longer-held GEM NFTs as a sign of loyalty and increasing value. Additionally, the larger the denomination of GEM you own, the greater your potential loyalty rewards.
For example, holders with a GEM50 may receive rewards such as tickets to exclusive events, while holders of a GEM5000 may be rewarded with luxury items like watches.
Note that all rewards are subject to the company’s discretion.
Our goal is to reward our most loyal GEM NFT holders in a fair and valuable way.
Below is the initial monthly distribution of the IPMB Token staking pool.
| Category | Grams | Quantity NFTs | Total (grams) | % | Staking Restrictions per whitelisted KYC’ed wallet |
| GeM1 | 1 | 35,000 | 35000 | 17.500 | 25 |
| GeM2.5 | 2.5 | 12000 | 30000 | 15.000 | 10 |
| GeM5 | 5 | 6000 | 30000 | 15.000 | 9 |
| GeM10 | 10 | 2000 | 20000 | 10.000 | 8 |
| GeM20 | 20 | 1000 | 20000 | 10.000 | 7 |
| GeM50 | 50 | 400 | 20000 | 10.000 | 6 |
| GeM100 | 100 | 100 | 10000 | 5.000 | 5 |
| GeM250 | 250 | 20 | 5000 | 2.500 | 4 |
| GeM500 | 500 | 15 | 7500 | 3.750 | 3 |
| GeM1000 | 1000 | 5 | 5000 | 2.500 | 2 |
| GeM5000 | 5000 | 1 | 5000 | 2.500 | 1 |
| GeM12500 | 12500 | 1 | 12500 | 6.250 | no restrictions |
| Totals | 200,000 | 56,542 | 200,000.00 | 100.000 |
Note: Please note that all wallet addresses participating in the scheme must complete an identity verification process known as KYC.
Unstaking: To incentivize IPMB Token holders to complete the full staking period, there is a time penalty (aka a holding period) for early unstakers. If you unstake early, your tokens are held for 14 days before you can access them.
Burning Mechanism: IPMB tokens used for converting to GEM NFTs are burned, reducing the total supply and potentially increasing the value of the remaining tokens in circulation.
What This Milestone Means for the IPMB Ecosystem
The launch of IPMB staking establishes a solid value floor for the IPMB Token, creating the first tangible bridge between the digital tangible token and physical gold. This milestone marks a significant step in building out the utility and long-term value of the IPMB Token.
With staking, IPMB holders can mitigate potential downside price risks while accessing discounts of up to 11% on physical gold through GEM NFTs. This unique value proposition offered by IPMB is further enhancing the token’s value for both investors and users. As the IPMB ecosystem evolves, staking will play a crucial role in adding stability and incentivizing long-term participation in the IPMB platform.
For more information on staking, join our Telegram channel or Discord server, where we’ll be posting all updates and information from the build to the launch.
About IPMB
The IPMB Ecosystem offers direct access to physical gold, allowing exposure to the stability of gold and the speed and security of the blockchain through a dual-token model.
Through this innovation, IPMB is striving to change the gold industry forever.
The IPMB mission is to provide the world access to unlimited economic freedom and opportunity, giving choice and control to accelerate a global transition to a low-cost, unified and transparent global currency.
