CACHE Token Governor

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.



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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