Proof of Reserve Transparency

CACHE uses GramChain® asset tracking to provide a reliable Proof of Reserve (PoR) which guarantees 100% gold backing and facilitates physical redemption on demand.

GramChain® tracks events at the origin and enforces immutable transparency so that any error or omission will be permanently and publicly visible. This level of transparency enforces operational excellence.

GramChain’s transparency is based on three key design principles

  • Origin Integrity: gold bars are packaged, photographed and tracked using tamper-evident GramChain® RFID tags by vault personnel. Data is recorded as “events” that always specify “who did what, when and where”.
  • Event Immutability: The event data is immediately hashed and broadcasted to a public blockchain (Ethereum). The data is public and its hash can always be compared against its original Ethereum hash to verify the data’s integrity.
  • Public Access: All data is public. Sensitive data is first salted and then hashed keeping the data private but providing a public audit trail on a “need to know” basis.

These three design principles result in the following characteristics:

1) GramChain® does not depend on, forgeable, third party documents

Traditional PoR systems rely on vault or bank statements. However, in the 21st century, although illegal, it is a trivial matter to falsify vault or bank statements. Signatures, statements and even notarized documents can be easily forged using photoshop and color printers.

Bernie Madoff defrauded nearly $65 billion USD over three decades by forging documents without investors, auditors or the SEC uncovering his massive Ponzi scheme.

The use of encryption and public blockchain technology combined with photos and detailed event data provides a vastly superior Proof of Reserve.

2) GramChain® events are tamper evident

By making event data public and including the hash of the prior parcel event, GramChain® creates a chain of events (the “Chain” in GramChain) so that any modification to a given event’s data (e.g. the mass of a bar) will invalidate its own data as well as that of all subsequent events.

This mechanism ensures that GramChain® data integrity can always be proven to be exactly as it was originally submitted by the vault operator. Event data hashes are a critical design feature that prevents CACHE, GramChain® or any other party from doctoring event data.

3) GramChain® implements redundant check and balances

GramChain® itself does not insert events pertaining to assets, it limits itself to support vault operators, custodians and service providers to use the GramChain® system. This policy, along with the tamper evidence controls and physical gold photos, create a very powerful check and balance system that limits GramChain® to do data quality checks.

If GramChain® identifies inconsistent data, the vault responsible for the event is contacted and the error is corrected with a new event. Since no records can ever be deleted, all details of the original error and its correction will always be publicly available.

New CACHE tokens cannot be minted until:

  1. Physical gold is present in a vault and it has been recorded with a “scan” event by the vault; and
  2. Custody of the gold has been transferred to CACHE by the vault with an “assign” event and a confirming vault statement has been uploaded to GramChain® .
4) GramChain® events and photos are public

All GramChain® data is always publicly available. Sensitive data is first salted and then hashed keeping the original private but providing a public signature of that data. This allows anyone to review the raw event data and independently confirm its hash with the event hash stored on the blockchain which verifies that the data has not been tampered with.

Philosophically this allows anyone to audit the data providing as close to a trustless Proof of Reserve (PoR) system as is possible.



NOTICE OF COMPULSORY CGT TOKEN REDEMPTION

Date of Publication: 20 June 2025

Compulsory Redemption Date: 30 September 2025, 23:59:59 (Singapore Time)

CACHE is winding down its operations and will implement a compulsory redemption process in relation to all outstanding CACHE Gold Tokens (CGT). Please see the CACHE Terms of Service (the “TOS”) for more information on this compulsory redemption process, which may be found at https://cache.gold/terms-of-service. Capitalised terms in this notice shall have the meanings ascribed to them in the TOS. This notice should therefore be read in conjunction with the TOS.

The Compulsory Redemption Date is set for 30 September 2025 (Singapore Time). On that date:

  1. CGT tokens will cease to be backed by gold and will no longer be recognized, honored, or redeemable by CACHE. While CGT tokens may technically remains on the Ethereum blockchain, they will have no further utility, value, or backing.
  2. Subject to eligibility (please refer to the TOS for more information thereon), Pax Gold (PAXG) tokens will be distributed via an airdrop (a blockchain-based transfer that requires no action from you) in exchange for your CGT held in an Ethereum Wallet as at the Snapshot Time (not after). Each PAXG token represents 1 troy ounce of fine gold stored in LBMA-accredited vaults in London and issued by Paxos Trust Company.

The airdrop of PAXG tokens will be based on CGT balances recorded in the last Ethereum block mined prior to 30 September 2025, 23:59:59 Singapore Time (the “Snapshot Block”) (and the time at which the last Snapshot Block was mined being the “Snapshot Time”).

Each eligible Ethereum Wallet will receive:

Number of CGT tokens held in such Ethereum Wallet ÷ 31.1034768 (rounded down to the nearest 0.00000001 PAXG or 8 decimal places)

This conversion reflects that each CGT represents 1 gram of fine gold, and each PAXG represents 1 troy ounce (31.1034768 grams). No fiat or market price valuation will apply.

If you prefer to redeem your CGT manually (e.g., for physical gold or fiat), you may do so through the CACHE website no later than 26 September 2025, 23:59:59 Singapore Time.

By continuing to hold CGT, you are deemed to have (A) accepted the terms of the compulsory redemption process as set out in Clause 5A of our TOS, (B) accepted that all your rights in connection with the CGT held by you shall be extinguished upon the Compulsory Redemption Date, (C) agreed that, where eligible, the Compulsory Redemption Tokens airdropped into your Ethereum Wallet shall be in full and final settlement of your CGT tokens compulsorily redeemed, and (D) waived any right to further redemption, refund, or legal claim against CACHE following the Compulsory Redemption Date.


For assistance, please contact [email protected].


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