Introduction
The IPMB Ecosystem is designed to revolutionise gold ownership by offering discounts on Investment-grade gold and also offering the possibility of being rewarded for holding gold in our ecosystem.
This ecosystem operates on a dual-token model involving GeM NFTs and IPMB Tokens, each with distinctive staking rewards. Here’s a detailed explanation of our ecosystem’s staking opportunities and potential loyalty rewards.
Explaining IPMB Token Staking
IPMB Tokens are the bedrock of transactions within our ecosystem and a hybrid payment/utility token. Each IPMB Token is backed by 1 gram of gold. Holding IPMB Tokens opens avenues to rewards from discounts on physical gold or luxury products.
The discount on physical gold is rewarded through a process known in the crypto world as staking.
Stacking entails locking up your crypto to support a network’s operations. In this case, staking your IPMB Tokens supports the IPMB Ecosystem.
The longer you stake your IPMB Tokens, the bigger the discount you get on GeM NFTs.
GeMs are redeemable NFTs representing physical quantities of gold.
Stake for 3 months: Receive a 2% discount on GeM NFTs.
Stake for 6 months: Receive a 5% discount on GeM NFTs.
Stake for 9 months: Receive an 8% discount on GeM NFTs.
Stake for 12 months: Unlock a substantial 11% discount on GeM NFTs.
Selling Flexibility: Token holders can sell their IPMB Tokens at any time, providing flexibility and liquidity. Selling your IPMB Tokens before the maturity of the staking period means forfeiting staking rewards.
Maximised Staking Benefits: The reward system is optimised to offer a maximum benefit cap of 11%. Beyond this peak, IPMB Token holders can gain any further discount.
Basically a 2% to 11% discount on investment-grade gold.
Converting your IPMB Tokens to GeM NFTs
IPMB Tokens can be converted to GeM NFTs to gain exposure to and a discount on tokenized investment-grade gold.
IPMB Tokens are backed by 22-carat gold doré, and GeM NFTs are backed by 24-carat gold. Once the process of converting IPMB to GeM is started, IPMB refines doré into 24-carat gold and allocates it to new GeM NFTs. The underlying gold behind GeM NFTs can be physically redeemed.
GeM NFTs represent a specific quantity of investment-grade gold. For example, a GeM100 represents 100 grams of 24-carat gold.
How many IPMB Tokens do I need to convert to GeM NFTs?
The conversion rate from IPMB Tokens to GeM NFTs is floating and changes depending on the price of gold and the price of the IPMB Token.
If the price of IPMB falls below the price of 1 gram of gold, then IPMB guarantees a conversion rate of 1 IPMB to 1 gram of GeM NFT, protecting the weight value of the IPMB Token.
In the case where IPMB Tokens are worth more than 1 gram of gold, then to convert IPMB Tokens to GeM, you only exchange the value equivalent of IPMB Tokens.
For example, assume IPMB Tokens are worth twice the price of 1 gram of gold, and you have staked for 12 months for an 11% discount.
For a GeM100, you would only need to tender 44.5 IPMB Tokens for the conversion after staking 50 IPMB Tokens.
This mechanism protects IPMB holders when the price falls below the underlying price of gold but maximises the value of their tokens when the price is above that threshold.
Explaining GeM NFT Rewards
GeM NFTs are digital certificates that are proof of ownership of 24-carat investment-grade gold. GeM NFTs offer the incentive of being an alternative method to gain exposure to or simply hold gold with no storage, insurance or management fees. On top of this, GeM NFT holders may also receive annual loyalty rewards in physical gold.
The reward would be relative to the amount of gold behind your GeM NFTs. For example, a GeM100 (100 grams of gold) holder may receive a 7-gram 24-carat gold coin as a loyalty reward.
The GeM NFTs operate on an independent rewards system, unlinked from the IPMB Tokens. Each GeM is backed by allocated gold, which can be redeemed at any point following the GeM’s first year from minting and according to relevant KYC/AML regulations.
GeM NFT’s loyalty rewards are subject to change and are at the discretion of IPMB.
Loyalty rewards are only eligible to holders of GeM100s or more.
Conclusion
Utilising the IPMB Ecosystem, with its verified asset-backed dual-token mechanism, offers holders benefits never seen before in the gold market. IPMB Tokens and GeM NFTs operate on independent yet complementary reward mechanisms. It is precisely engineered to meet diverse token holder needs, be easy to use, encourage gold ownership, and meet diversification needs.
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.
IPMB’s 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.
‘From the mine to the vault, and in the cloud’, IPMB manages and operates physical gold production, sourcing, beneficiating, exporting, refining, stamping and vaulting of gold.
The IPMB Ecosystem is at the heart of the IPM Group, a group of companies spanning three continents and five countries.
To learn more about the project, visit the IPMB website or explore their communities.
