The token supply is kept in sync with its underlying gold supply via an administrative interface referred to as the CACHE Token Governor. The primary purpose of the CACHE Token Governor is to ensure that the number of tokens in circulation never exceed the number of grams of pure physical gold locked and tracked by GramChain® . Prohibited actions, such as attempting to unlock bars without first removing an equivalent number of tokens from circulation, will be blocked by the CACHE Token Governor and CACHE’s administrators will be immediately alerted.

The CACHE Token Governor manages a smart contract known as the Locked Gold Oracle, which stores the real-world supply of locked gold grams. When gold bars are locked on GramChain, a corresponding transaction is also created to increment the locked gold count on the Locked Gold Oracle smart contract. During any mint operation, the CACHE Gold smart contract checks the Locked Gold Oracle to see if the mint operation is valid, specifically, if the amount to be minted is less than or equal to the total amount of locked gold as supplied by the Locked Gold Oracle. Any invalid minting attempts will fail.

The CACHE Token Contract itself is owned by a multi-signature smart contract in which multiple parties must reach a quorum in order to perform any administrative actions, such as minting, moving tokens out of circulation, or lowering the transfer fee.

In the event that the Locked Gold Oracle is providing invalid data, such as a locked gold amount that exceeds the real world amount, the multi-signature parties of the CACHE Token Contract would see this in the CACHE Token Governor interface, and would not collectively approve any mint operation until the Locked Gold Oracle was validated and updated with the correct amount. In this way, there are multiple checks and balances that ensure that CACHE Gold always remains solvent.

Similarly, for any amount of gold to be unlocked from the system, tokens first must be moved out circulation. The CACHE Token Governor will reject any unlock action if the resulting total amount of locked gold would fall below the circulating supply of CACHE Gold tokens.

In the event that the GramChain® private API is hacked and bars are erroneously unlocked outside of the CACHE Token Governor interface, the Token Governor will alert on the invalid operations and disallow the purchase or physical redemption of bars illegally unlocked. Once the APIs are re-secured, the gold would be properly relocked and the system would continue to function as intended.

Collectively, the CACHE Token Governor adds layers of redundant checks and balances to prevent invalid operations and to provide alerts for any attempts at hacking or theft. The result is a system in which it is impossible to redeem CACHE Gold tokens for physical gold without first taking an equivalent number of tokens out of circulation, and impossible to mint more tokens without having first locked an equivalent amount of unencumbered gold.

Important Notice:

CACHE Gold was founded in 2018 to digitize, by issuing fungible ERC-20 tokens, uniquely tracked gold bars in a transparent and fully backed manner using GramChain asset tracking system, thus providing a real-time and tamper evident Proof of Reserve (PoR).

Our approach was compliant to the definition of an asset-backed-token under the Singapore Precious Stones and Precious Metal Act (PSPM Act) as administered by the Singapore Ministry of Law.

In mid-2023, Singapore Ministry of Law announced the proposal to amend the PSPM Act whereby “the definition of asset-backed token will be updated to exclude digital payment tokens” and that “[sale of] tokens backed by gold to a customer after the effective date of this amendment, will not fall within the scope of regulated dealing under the PSPM Act.”

With these changes, gold backed tokens, from a regulatory perspective will be regarded as securities under the Monetary Authority of Singapore (MAS). MAS securities regulations makes the issuance, distribution and trading public blockchain tradeable tokens impractical.

This shift removes the regulator assurance of issuing new CACHE Gold Tokens in Singapore and as a result, CACHE Gold has made the difficult decision to enter indefinite dormancy, with the aim of just facilitating the redemption/conversion of any remaining tokens.

If you hold any outstanding CGT, please contact us at [email protected] for guidance on CGT redemption/conversion.

CACHE Gold has consistently maintained more than 100% backing for its tokens and possesses adequate net assets to responsibly close operations, settling all liabilities. We have actively reduced outstanding tokens and hold only a minimal number of third-party tokens.

We deeply regret being unable to realize our vision of issuing highly transparent public blockchain gold tokens.