How the LODE System Works
Create a LODE Account and become a LODE Contributor – buying or delivering silver through LODE’s verified vaulting partners.
Contributors then receive a LODE Token in a digital wallet as a receipt for the vaulted silver.
The silver is then digitally recorded on the blockchain as AGX Coins. One AGX Coin is minted for each gram of silver.
AGX Coins are then enabled through options such as POS, tap and pay apps, ATM networks, prepaid debit cards, barter networks, and exchanges.
The proceeds from selling AGX Coins are used to buy more silver, which is then used to mint more AGX Coins.
LODE Token holders are rewarded by receiving micro-payouts from newly minted AGX Coins.
THE LODE PROJECT
What is the LODE Project?
The LODE Project aims at restoring silver to the monetary system by pioneering the world’s first Digital Silver-Money System powered by blockchain. The project is backed by a global, decentralized group of sound money advocates that believe silver can serve as an affordable, verifiable, and secure store of value, and that when “tokenized” upon the blockchain, becomes a superior medium of exchange.
Where does the term “LODE” originate from?
The MOTHER-LODE is a principal vein — or zone of veins — of gold or silver ore. Ambitious Placer miners follow gold-bearing sands upstream to discover the source. This source is called the “mother” of the gold in the river, and so was dubbed the “mother lode”. The term is also used colloquially to refer to the origin of something valuable or in great abundance. This is how the LODE Project derived its name because of its close relation to silver and its vision to see mass adoption of digital silver-money.
Why should I put my silver to work in the LODE Project?
Millions of silver stackers around the world hold tens of millions of ounces of investment-grade silver as a safe and secure buffer against any potential economic collapse. Most, if not all, store silver in traditional ways such as in home safes and banks.
Most of this silver sits idle for many years, in the hope that it might someday provide the owner with financial protection and possibly, a better return over the original cost of their silver purchase. While this may well happen, there is no guarantee.
The LODE Project offers silver enthusiasts an opportunity to put idle silver to work and receive rewards for contributions into the project.
What happens after I contribute my silver into the LODE Project?
- After creating an account, LODE Members contribute silver through LODE’s verified vaulting partners.
- Contributors then receive a LODE Token in a digital wallet, which represents a bond that is based on the amount of silver they contributed.
- The silver is digitally recorded on the blockchain as AGX Coins. One AGX Coin is minted for each gram of silver that enters the system.
- AGX Coins are then enabled through options such as POS, tap and pay apps, ATM networks, prepaid debit cards, barter networks, and exchanges.
- The proceeds from selling AGX Coins are used to buy more silver, which is then used to mint more AGX Coins.
- LODE Token Holders are rewarded by receiving micro-payouts in the form of AGX Coins.
The LODE Project will ensure the supply of investment-grade silver bullion is made transparent and verifiable to ALL LODE Users at ALL times using blockchain technology.
How is the LODE Project governed?
The governance of the LODE System will be set up in three phases to ensure the project’s mandate is met with the intention that the LODE Community ultimately governs the entire system.
Phase 1 – The system is managed by Interfix on behalf of the LODE Community. LODE Service Providers are developing the system architecture to ensure enterprise-level readiness for market release. This protocol maximizes efficiency and reduces the time required for upgrades.
Phase 2 – Once the LODE Community and the Service Providers Alliance are running the system, the LODE Project will begin relying on the expertise of Service Providers and Community Ambassadors to make decisions on behalf of the community. Interfix will continue to guide the project but decisions will be increasingly based on input from the LODE Community.
Phase 3 – The third phase of governance will pass control entirely to the LODE Community. With LODE Tokens being the governance token, LODE Token Holders wishing to participate in the governance of the LODE Community will be given voting and decision-making rights. It is expected that almost everything will be done by community vote.
Who are key players in the LODE Project?
The LODE Community is made up of like-minded silver enthusiasts who all advocate for the restoration of silver as money. The community includes all LODE Token and AGX Coin Holders, merchants, and service providers involved in the system. For more details on who makes up the LODE Community, read through the “Governance Explained” section of the Project Paper.
Where can I find more detailed information about the LODE Project?
THE FUTURE OF MONEY™
Why is LODE the “Future of Money”?
A secure, stable and dependable form of money (“sound money”) MUST be grounded on three fundamental principles:
“Money must act as a store of value, a unit of account, and a medium of exchange.”
A store of value is anything that retains purchasing power into the future.
A unit of account is a nominal monetary unit of measure or currency used to represent the real value of any economic item; i.e., goods, services, assets, liabilities, income, expenses, silver, and gold.
A medium of exchange is the function of money as a widely accepted “token” or “coin,” which can be exchanged for goods and services in trade and commerce.
Unlike today’s paper currencies, LODE has been able to combine all three principles with the unique and historical qualities of silver, coupled with today’s modern blockchain technology to create a form of money that meets the current and future needs and demands of global trade and commerce.
Why Silver as money?
For thousands of years, and up until just a few hundred years ago, silver was widely used as money in day-to-day transactions. Unlike today’s paper money, silver has always had its own intrinsic value. Silver has proven itself over the centuries to be a stable store of value, a trusted unit of account, and an affordable medium of exchange. Today, silver now largely sits idle due to the shift towards the “convenience” of using paper money.
What is sound money?
Sound money is stable money backed by tangible commodities such as gold, silver or platinum. Sound money has an intrinsic value that has purchasing power determined by the market and is independent of governments and political parties. In general, it is not liable to sudden depreciation or appreciation in value. The term sound money has its roots in ancient Rome where small silver coins were the standard in everyday trade and commerce. (See Black’s Law 4th Edition, page 1157)
What is a monetary system?
The usual meaning is, “pertaining to coins or currency, or having to do with money”, but it has been held to include personal property. A commodity money system is a monetary system in which a commodity such as gold or silver is made the unit of value and physically used as money. The money retains its value because of its physical properties (intrinsic value). The alternative to a commodity money system is fiat money, which is defined by a central bank and government law as legal tender even though it has no intrinsic value.
What is paper money?
Paper money is any legal document that displays or carries a monetary value such as promissory notes, cheques, postal orders, cash, bank drafts and other bills of exchange.
What is currency?
Currency is a generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade. It has face value but no intrinsic value and is often printed without reserve or limitations.
What is cryptocurrency?
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are a kind of alternative currency, which have limits or restrictions pertaining to their creation.
How are cryptocurrencies created?
Cryptocurrencies are a sequence of encrypted bits transmitted and stored over a network. These digital currencies are developed using different cryptographic functions and have different values based on their creation date, the number of users, the extent of the network and transaction volumes.
What is a cryptographic or digital monetary system?
It is a blockchain-based, electronic money transfer system that uses peer-to-peer networks to prevent double-spending or any fraud of accounts. Widely considered to be the future of money, cryptographic monetary systems are capable of instantaneous transactions and borderless transfer of ownership while reducing fees common to current monetary systems.
What is a monetary mass?
In the LODE Community, the monetary mass is all of the silver that has been securely vaulted and authenticated for the tokenization of AGX Coins.
What is a cryptographic token?
A cryptographic token represents a particular fungible and tradeable asset or utility, managed by a smart contract and an underlying distributed ledger (or blockchain).
It acts as a secure, stable, user-friendly digital asset that enables an optimized way to send or receive money, commonly using blockchain technology. Digital coins can be used to purchase goods and services and are often referred to as digital money.
How do I register for the LODE Project?
You can register for the LODE Project by visiting: LODE/AGX Register New Account page and provide the required information.
Where can I find my LODE ID account number?
Your LODE ID is in the upper right-hand corner of your profile page, which can be found by clicking on the “man” image in the upper right area of your dashboard. (after you have logged into your account).
What information is required to complete my registration?
To become a member of the LODE Community, the system will ask for your first and last name, your phone number, country of residence, and your email address. In addition, you will need to choose a username and record your unique password for your LODE account.
However, if you would like to contribute to the project by “LODE-ing” the vault with physical, investment grade silver, and receive LODE Tokens, you also will need to provide a physical street address as per KYC (know your customer) policy.
The LODE system indicates that my password is invalid. What can I do?
When creating your password, please ensure it is a minimum of 8 characters and includes at least one capital letter, one small letter, one number, and one symbol/alphanumeric such as an exclamation mark (!) or a question mark (?), or some other symbol. (@,$,%)
I can’t log into my LODE account, what should I do?
LODE is constantly upgrading and making changes to the website. You may occasionally find that you are not able to log into your account. If you experience this issue, we suggest that you login with your email address instead of your user name. If the issue persists, you may need to clear your browser history and cache. In addition, you may need to use Chrome as your browser when logging into your LODE account. In most cases, this will solve the issue.
As a last option, try creating a new password by following the instructions noted above.
How can I contribute investment-grade silver bullion to the LODE Project?
You can contribute silver bullion to the LODE Project by logging into your LODE account and either;
- Complete a “Buy” order, which will be filled on your behalf by Bullion Dealer Alliance (BDA) Cayman, LODE’s vaulting service provider, and will be transferred directly to the LODE Community vault account at BDA Cayman or;
Who is eligible to participate?
To be eligible to participate in the LODE Community, you must be at least 18 years old and reside in a country in which LODE is available. Please note that LODE is not available in every country and in certain jurisdictions, the purchase of silver to acquire LODE Token digital receipts is restricted to accredited investors only.
- Banned Countries List:• Afghanistan• Bosnia and Herzegovina• Burundi• Congo• Cuba• Cyprus• Egypt• Eritrea• Ethiopia• Guinea• Guinea-Bissau• Iran• Iraq• Jordan• Kenya• Laos• Lebanon• Libya• Nigeria• North Korea• Pakistan• Qatar• Somalia• Sri Lanka• Sudan• Syrian Arab Republic• Trinidad and Tobago• Tunisia• Uganda• Ukraine• Vanuatu• Venezuela• Yemen• Zambia• Zimbabwe. Any transactions to or from these countries should be blocked due to the Sanctions regime. These countries are already blocked via Sum and Substance ensuring LODE does not onboard any clients from these locations.
The list of Countries requiring accredited investor status for LODE Token participation:
- The United States of America
What do you do if you don’t own silver, but still want to participate?
- First, you need to register.
- Click Here to Create LODE Account
- Once you have set up and registered your LODE online account, log in to your account and click on the “Buy” tab at the top of your Dashboard page.
- On the next screen, input the number of ounces that you wish to buy, with a minimum of 100Oz.
- Click on the blue “Commit” button and then click on the “Confirm” button.
- Your dashboard will then show the status of your order in the system as “New”.
- BDA Cayman sells investment grade silver (.999) to LODE Community members at the spot price plus the current bullion dealer premium. Once you place your “Buy” order, BDA Cayman will be in touch with you within 24 hours and provide you with more information, purchase options, and instructions on how to complete your “Buy” transaction.
- Note: This is a measure of Troy Ounces which converts to 31.1 grams.
How do I “Deliver” my silver to the vault?
You can “Deliver” your own silver to the nearest vault facility by clicking on the “Deliver” button at the top of your dashboard page. From there, provide a list of the various brands and weights of your metal (if different) to be delivered. Enter each different brand and weight separately and click on “Add to list.”
After completing all of your entries, check to make sure your total weight is correct before clicking the “Commit” button at the bottom left of the page. Our vaulting partner, BDA Cayman, will then email you instructions on how to package and ship your metal.
How long does it take for my silver order to be delivered to the vault?
Shipments can take anywhere from ten days to two weeks to reach the nearest vault affiliate facility, depending on where your contribution is being shipped from, and to which vault facility your contribution is being shipped to. Shipments can be tracked in real-time on the FedEx or Loomis websites.
Can I make additional or multiple contributions to the LODE Project?
Yes, you can always add additional contributions to your LODE account at any time by placing either a “Buy” or “Deliver” order through your online LODE account.
When do I receive a confirmation of my contribution from BDA?
Once your contribution has been deposited into the vault, you will receive confirmation by way of an email from BDA Cayman.
When do I receive a confirmation of my order in my online LODE account?
You will typically receive confirmation of your contribution to your LODE account from LODE within 5 business days after you receive your confirmation from BDA Cayman.
Can I change my contribution method from a “Buy” order to a “Deliver” order or vice versa?
Yes, you can change your contribution method by contacting LODE at firstname.lastname@example.org to request the change. Please be sure to include your name and six-digit LODE ID number with your written request. You will then receive an email confirmation of your change detailing any new instructions on how to complete your “Buy” or “Deliver” contribution to the vault.
Can I contribute gold bullion to the LODE Project?
Yes, you can contribute investment-grade gold to the LODE Project. When placing your “Deliver” order through your LODE online account, simply click on the “silver” box at the top of the page and change it to “Gold” and then indicate the number of ounces or grams of gold that you are contributing. Once you have completed your order, you will then receive instructions from BDA Cayman on how to “Deliver” your gold contribution to the vault. The current conversion rate of gold to silver is 75 ounces of silver for each ounce of gold contributed.
Which Blockchain do the LODE Tokens and AGX Coins use?
The LODE Project will be using the Hyperledger Fabric blockchain as the main ledger for LODE Tokens and AGX Coins. As a secondary permissionless blockchain, the LODE Project will be using the Syscoin network. Eventually, the LODE Project will expand into other public blockchain networks that will increase interoperability for community members.
What is Hyperledger?
Hyperledger Fabric is an open-source project supported strongly by industry veterans such as IBM. Fabric differs from a public blockchain network in one significant way: permissions.
Fabric offers the ability to restrict both read and write permissions, allowing enterprises to comply with security and privacy obligations. Further, smart contract upgrades are supported by Fabric. This feature permits enterprises to do things like improving security, correcting errors, adding features and responding to changing regulatory requirements.
The LODE Hyperledger Fabric is a ledger of account that records all transactions and utilization of LODE Tokens and AGX Coins
What is Syscoin?
Founded in 2014, Syscoin Platform is the world’s first tested blockchain scalability platform, providing over 60K Transactions Per Second (“TPS”). Syscoin is a powerful multi-purpose blockchain platform that puts businesses on the blockchain. LODE Association partners, Blockchain Foundry Inc., are currently in charge of developing the core protocol for the Syscoin platform and the company was originally founded by the co-founders of Syscoin.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a software program that stores private and public keys, and which interacts with various blockchains to enable users to send and receive digital currency and monitor their balances. The LODE community currently offers four types of wallets, the AGXPay Mobile Wallet, the LODE Desktop Wallet, Hyperledger custody wallet and Paper Wallets.
What options do I have for cryptocurrency wallets?
All wallets have their place in the cryptocurrency wallet ecosystem, depending on what community members need to use them for. AGX Coins on the Syscoin blockchain can be easily sent between the following three available wallets for community members:
The Desktop Wallet is a secure wallet that users can register through the member’s portal. This type of wallet allows members to safely store their AGX Coins. However, the Desktop Wallet does not provide the same flexibility or transactability that the AGXPay Mobile Wallet offers.
AGXPAY Mobile Wallet
The AGXPay Wallet is an innovative mobile wallet made specifically for the LODE & AGX Community. It enables users to store, send and spend AGX Coins seamlessly. It requires a lot less storage on users’ devices and provides a simple mechanism for remembering users’ private keys and addresses. The AGXPay Wallet is one of a kind in that it combines aspects of both public and private blockchains while enabling users to freely switch between these blockchains. While the desktop wallet is still available for users, the mobile wallet is intended to offer a simpler user experience, to enable transactability, and to allow users to carry their balances in their pockets.
The Paper Wallet allows users to store their AGX Coins off the grid. It is a secure way to store balances off the internet and removes the risk of hacking as long as users safeguard it properly.
What is a payment gateway?
A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes digital payment, credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar businesses.
Who is CoinPayments?
CoinPayments is the first and largest payment processor for cryptocurrencies. It is a global cryptocurrency payment platform that accepts over 1,685 altcoins at a flat transaction fee of 0.50%. This payment platform caters to merchants or anyone who sells products or services online. The platform is used by 234,500+ vendors across 182 different countries. It is popular among businesses who want to accept cryptocurrencies, but don’t want to go through the process of individually accepting each currency.
Where can I see my tokens?
LODE Tokens and AGX Coins can be seen in the member’s dashboard on LODE.ONE or AGXPAY.COM. Those balances represent the safely stored LODE Tokens and AGX Coins in the Hyperledger.
If you have questions regarding specific wallets, please join our Community Telegram Group or e-mail email@example.com for more information.
Why should I hold/freeze my LODE Tokens?
LODE Tokens represent your contribution to the monetary mass and, when held/frozen on hyperledger, generate rewards holders.. The rewards — referred to as AGX Micro-payouts — are paid out 7 times a year and come in the form of AGX Coins.
How can I exchange my LODE Tokens and AGX Coins?
At this time there is no active effort to position the LODE and AGX assets on cryptocurrency exchanges. This does not preclude LODE and AGX being listed, but it will not be pursued in the near term as a means of liquidity. Exchangeability for the LODE Community is still a primary goal, meaning that liquidity will be provided through other LODE Community focused means such as: peer-to-peer trading, card programs and conversion to silver.Exchangeability for both tokens is in development and will be outlined in the 2020 Roadmap.
How do I get a hardware wallet?
Efforts are being made for a contributor to be able to purchase and use selected hardware wallets in order to store LODE Tokens and/or AGX Coins. More information will be communicated on www.lode.one and on the community Telegram channel.
What is the value of an AGX Coin?
Currently, the retail price of an AGX Coin is equal to the prevailing rate of the spot price of one gram of silver plus 27.5%.
How can I Download and Install the AGXPay Mobile App?
LEGAL & FINANCIAL
Is there going to be an Initial Coin Offering (ICO)?
No. The funding mechanism for participation in the LODE Project as a contributing member is limited exclusively to an exchange of investment-grade silver bullion for LODE Tokens.
What is an exchange fee?
The exchange fee is the cost of exchanging cryptographic assets for any other type of currency such as USD, EURO, Yen, Bitcoin, Ethereum and/or Dash.
What is a transaction fee?
A transaction fee is the cost paid to perform a transaction on a blockchain network.
Is the LODE Project safe? What is the risk of contributing to the project?
Safety and security are the LODE Project’s highest priorities.
Like any investment, there are risks associated with committing investment-grade silver bullion to the LODE Project. Contributing members understand that any investment into the LODE Project is not 100% secured and may be subject to complete losses of assets in the event that the project becomes insolvent. The silver from contributions is sold, either digitally, as AGX Coins, or physically, to cover the costs of the development of the system. Therefore, there will likely only be a small fraction of the invested silver that could be returned to the contributor in the unlikely event the project becomes insolvent or otherwise fails. (See the “LODE Investment Contract”).
Should the LODE Project fail to move forward, will my contribution be returned?
In the unlikely event that the LODE Project fails to move forward, all contributed silver in the vaults (minus any liabilities) will be returned to LODE Token Holders. These liabilities include the AGX already in circulation as well as other any other debts incurred for the project’s development.
If I have a concern about my contribution, my member account, or want more information about the LODE Project, who do I contact?
You can contact a LODE Ambassador at firstname.lastname@example.org for more information. You can also ask any questions and state concerns about your “Buy” or “Deliver” order, or about any other issues, concerns, or suggestions regarding your LODE account and the LODE Project. Also, feel free to sign in to the various LODE media platforms (Twitter, Facebook, YouTube and Telegram) to keep up to date with LODE news and other updates. You can also review the following documents:
What are my rights of survivorship?
LODE strongly encourages any contributor to ensure that they have a clear survivorship plan for their LODE Tokens and/or AGX Coins. This will ensure a beneficiary’s ability to take ownership of the assets with relative ease should the need arise.
There are three different scenarios wherein the Right of Survivorship is applied to the ownership of LODE Tokens and/or AGX Coins:
- The first is when LODE Tokens/AGX Coins are stored in the LODE Association’s Hyperledger Blockchain Platform
- The second is when the assets are stored in a private wallet outside Hyperledger
LODE Specific Wallets
When LODE Tokens and/or AGX Coins (the assets) are held within the Lode Association’s Hyperledger Blockchain Platform, the assets will be under the control of the wallet holder (the deceased). In order to change ownership of the assets, the LODE Association will require the information and process as listed below. Once the below steps are complete, the LODE Association will contact the LODE Wallet Service Provider(s) to initiate the transfer.
Steps for LODE Token transfer from a Deceased Member to a Beneficiary:
The Executor or a Wills and Estates Lawyer must send an email notification of the contributor’s passing to email@example.com as soon as possible after passing including the following:
A certified true copy of the Death Certificate.
Proof of Executor status and order of the probate court.
The Executor or the Token Beneficiary(s) must create a LODE Member Account and generate a LODE Wallet;
The Executor or the Token Beneficiary(s) must complete the KYC process attached to their wallet; and
Upon completion and confirmation of the above steps, the Vault Master (or Service Provider) will transfer tokens and/or coins values to the Executor or to the Token Beneficiary’s account when tokens and coins are issued to the LODE Community.
LODE accepts no responsibility for this transfer and it is incumbent upon the Executor and Beneficiaries to ensure proper lawful transfer of these elements of the estate.
External Private Wallets (Desktop, paper and Mobile)
One of the features of a private wallet is that the tokens are exclusively controlled by the private key holders. This means that if the deceased party hasn’t provided the private key to the beneficiary, the assets stored in the wallet will be permanently lost.
A clear survivorship plan, determined with a Wills and Estates Lawyer, will ensure the beneficiary’s ability to take ownership of the assets by using the private key. No proof of death or identity will need to be provided if the survivorship plan is in place.
Once again, LODE strongly encourages any contributor to ensure that they have a clear survivorship plan, whether it be for LODE specific wallets or for any privately held wallet keys.
The LODE Association
The LODE Association is an independent establishment recognized under Lichtenstein law, aimed at tokenizing investment-grade silver bullion into a two-token digital silver-money system. With no shareholders, the LODE Association is governed by a Board of Directors. It is made up of a global, decentralized group of sound money advocates that believe silver can serve as an affordable, verifiable, and secure store of value, and that when “tokenized” upon the blockchain, becomes a superior medium of exchange. Together with the LODE Service Providers, the LODE Association is creating a collaborative ecosystem built on the foundations of the LODE Ethos. An autonomous, secure, and disciplined ecosystem that returns a private, resilient, and autonomous unit of account to our economic system.
Why is the LODE Association now based in Liechtenstein?
The Lode Association is in the process of being established in Liechtenstein because the country has a unique legal type of entity called “Establishment.” Given that an “Establishment” has no owners or shareholders, it provides a perfect structure for the LODE Community and the LODE Project. Liechtenstein is also the leading jurisdiction when it comes to blockchain regulations.
Will there be regular updates, news, and other information provided to the LODE Community?
Yes, the LODE Service Providers Alliance will be posting regular and relevant news concerning the LODE Project in the “News” section of the LODE Members’ back-office.
Additionally, LODE Ambassadors will produce regular newsletters and provide various channels for communicating updates through social media, including the Community Telegram Group.
AGX Media (AGXm) was also created to host exclusive interviews and content on blockchain, financial markets, precious metals markets news. It will also host all LODE Project news and updates. To find all AGXm content, feel free to browse through the YouTube channel, the Medium page and LODE Community Telegram Group.
I have other questions about the LODE Project, who do I contact?
If you have other questions regarding the LODE Project, please contact LODE directly at firstname.lastname@example.org and a LODE Ambassador will respond to your questions within 24 hours.
LODE TOKEN AND AGX COIN
How is silver “tokenized”?
The term token is generally referring to a cryptographic string of numbers and letters that references particular data. For the LODE Project, the silver is tokenized through the creation, transfer, and storage of cryptographic data that uses strings of numbers and letters to refer back to the values of the vaulted silver.
What are the two tokenized assets?
The LODE Project has two tokens, the LODE Token & the AGX Coin, whereby each represents a unique relationship or right of claim to investment-grade, securely-vaulted silver bullion.
Those who do not currently have silver can purchase silver directly through any of the community’s vaulting partners: Bullion Dealer Alliance (“BDA”) or a participating bullion dealer. The corresponding token is referred to as a LODE Token and it acts as a perpetual bond offering holders a variable interest payment (known as AGX Micro-payouts) in the form of AGX Coins . The AGX Micro-payouts will be delivered 7 times per year (or every 52 days) directly to the holder’s wallet. The size of the rewards is based on the growth of the monetary mass since the last payment, with fast growth resulting in larger payments.
The second token, referred to as the AGX Coin, is a digital representation of one (1) gram weight and measure of the vaulted and verifiable investment-grade (99.9%) silver bullion held in the LODE Reserves. AGX Coins are a pickup slip for silver, and can be redeemed by the bearer. It is redeemable with the LODE Association as described in the AGX terms and conditions.
How does the LODE Token work?
After a secure registration process, new members can contribute investment-grade silver bullion (or gold equivalent) to the LODE Vaults. When the silver bullion enters the vault, it is certified as 99.9% pure properly accounted for, vaulted, insured and then tokenized.
The creation and issuance of LODE Tokens occur in progressive phases, and at exchange rates determined by the appropriate LODE Service Provider. The LODE Token exchange rate will also rise within each of the phases over time as the community grows.
LODE Tokens are delivered to the contributor’s private wallet, leaving a verifiable and immutable record via the blockchain. LODE Tokens are kept in the Hyperledger to secure them and to ensure holders are qualified to receive AGX rewards. If a LODE Token Holder wants to sell LODE Tokens, he or she can do so privately, as long as the buyer opens an account with the LODE Association and completes the KYC (“Know your Customer”) process.
What are the use cases for LODE Tokens?
Silver Stackers (Individuals)
LODE Tokens provide an opportunity for individuals to put idle silver grams to work on the blockchain, track them and receive rewards (AGX Micro-payouts).
A LODE Token is a speculator’s asset that has a unique relationship to silver. Crypto traders can purchase a LODE Token if they wish to contribute physical silver into the system and speculate on a blockchain enabled silver-money system. Crypto traders and/or fund managers of cryptocurrency and blockchain assets can position LODE Tokens as a means to diversify portfolios.
Bullion Dealers can encourage their consumers to purchase LODE Tokens, a speculatie security token that will rise in value as the LODE System expands. LODE Token Holders also benefit from regular rewards as LODE Token Holders.
Public and private silver mining companies may deliver and exchange their silver into the LODE System. The silver will then be tokenized and the LODE Association can sell AGX to industrial companies, suppliers/merchants, vendors and any other number of groups or silver enthusiasts.
Stock / Paper Investors
LODE Token assets may present an additional opportunity for silver investors that have experience trading in ETFs, silver stocks and the Paper Silver market. LODE Token positions provide a new asset class that offer a platform for further diversification, new types of security instruments and lower administrative costs for trading, exchanging and transacting with silver. LODE Tokens also provide holders with another avenue of returns with AGX Micro-payouts.
Bullion investors may exchange physical coins and bars for LODE Tokens and tap into its purchasing-power with LODE-friendly payment gateways, merchants, and retailers seeking private and secure settlements. Additionally, LODE Tokens can eventually be deposited with a cryptocurrency exchange operator and converted into other digital assets like Bitcoin. This allows bullion investors to seamlessly position themselves into the cryptographic asset investment sector. This functionality will be added to the LODE System at a later date.
How does the AGX Coin work?
AGX Coins will provide users with a high-speed, low-cost, private, and borderless method for global commerce. AGX Coins will only flow in and out of private wallets when enabled by the encryption keys of the AGX Coin owner.
AGX Coins may be redeemed for investment-grade bullion, through participating precious metals dealers (subject to the vendor’s terms and conditions), and through participating retailers via payment gateway service providers (ie: visa, debit, POS, ATM). AGX Coins may also be used for the direct purchase of goods and services at participating merchants, who accept AGX Coins as payment. As per the terms and conditions, AGX can also be redeemed directly with the LODE Association .
Individuals insure savings and protect purchasing-power by holding AGX Coins in their private digital wallet. Each AGX Coin is tethered to a verifiable one (1) gram weight of reserved silver bullion, backing each coin with over 30 inherent benefits silver provides. AGX Coins may be exchanged at any point, and from virtually anywhere, for the reserved silver in the vaults.
Small business owners, manufacturers, professionals, and retailers will gain access to a global customer base by offering products and services on AGX Markets, and by accepting AGX Coins as payment. AGX Markets provides business owners with low-cost, secure AGX-enabled transactions with low cash fees on sales. Also, merchants can connect with suppliers for business expenditures, access valuable rewards and incentives programs, and protect their business against depreciating fiat currency.
Cryptocurrency holders can trade or transact with digital silver. Fund managers of cryptocurrencies and blockchain assets can also position AGX Coins as a means to stabilize and diversify client portfolios, insulate profits, and hedge against volatility. Eventually, AGX Coins will be deposited with cryptocurrency operators to enable conversion into other cryptocurrencies like Bitcoin or into fiat positions.
Industrial users of silver may seek to buy, exchange, or earn AGX Coins as a means to further secure their hedging operations, or to secure future supplies of silver for industrial applications. Also, they can use AGX Coins to speculate upon the future price of silver.
In addition to selling physical silver, Bullion Dealers will be able to offer AGX Coins to their customer base. AGX possess superior qualities to idle physical silver as they are transactable and transferrable. AGX Coin holders can also exchange their AGX for silver bullion with bullion dealers at the prevailing rates.
Public and private silver mining companies may deliver silver into the LODE System and exchange their AGX Coins on AGX Markets. With AGX Coins, silver miners can protect their purchasing power from depreciating fiat currency, recover losses on idle inventory and reduce business expenditures with other AGX Merchants.
Silver bullion investors may exchange their physical coins and bars for LODE Tokens and AGX Coins. The LODE Token provides an opportunity for silver enthusiasts to put idle silver assets to work. The LODE System will enable transactions between silver-money seekers and AGX retailers seeking sound silver settlements. All vaulted silver is reserved and insured on the blockchain.
B2B(Barter) Exchange Operators
AGX Coins provide a superior trade and commerce settlement tool, giving AGX Merchants leverage across the AGX Ecosystem. Participating merchants may conduct reciprocal trading on AGX Markets by offering up idle inventories to source products and services used in business operations.
How does the AGX Coin derive its value?
The value of the AGX Coin is derived from industry retail pricing metrics (ie. the cost of producing and vaulting one gram of silver) found within the precious metals marketplace, combined with the added value and convenience of digital tokenization.
Can I buy physical silver with AGX Coins?
AGX Coins can be redeemed for silver to the LODE Association as per the terms of service. AGX Coins can also be redeemed via participating merchant dealers, including precious metal bullion dealers worldwide.
How can I sell LODE Tokens?
LODE Tokens are an investment and can only be liquidated through private sales. Any form of payment may be negotiated and accepted through private agreement. Once buyer and seller negotiations are agreed, the LODE Association will transfer the LODE Tokens from the seller’s account to the buyer’s account. The buyer and seller are responsible for the transfer of whatever form of payment they agree to.
Can I send and receive LODE Tokens?
A peer-to-peer solution is in the roadmap for Q2-Q3 2020 enabling LODE Token Holders to make the transfer of tokens independently from wallet to wallet.
How do LODE Token Holders receive AGX Micro-payouts?
LODE Token Holders that leave their LODE Tokens in the Hyperledger blockchain are rewarded with AGX Coins. AGX Micro-payouts are paid out progressively 7 times a year (or every 52 days). As the marginal silver increases in the vaults, so do the micro-payouts LODE Token Holders receive. LODE Tokens must remain in the Hyperledger to be eligible to receive rewards.
How are my LODE Tokens stored and secured?
LODE Tokens are currently held in a secure Hyperledger provided by a qualified service provider.
What is the conversion rate of physical silver to LODE Tokens in each of the Phases?
Details on all of the Phases can be found here. The LODE Project is currently in the Adjustment Phase, and the conversion rate is 3.80 grams to secure one LODE Token.
How do I calculate the number of LODE Tokens I will receive for my contribution?
To calculate the number of LODE Tokens you will receive for your contribution, simply divide the number of grams you contributed by the designated exchange rate for the Phase in which you contributed.
For example, if you contributed 100 ozs (3110 grams) in Phase 3, divide 3110 by 3.70 (the Phase 3 exchange rate) for a total of 840.54 LODE Tokens.
Another example: If you contributed 200 ozs (6220 grams) in Phase 2 ( Exchange rate of 1.85 ), divide 6220 grams by 1.85 for a total of 3362.16 LODE Tokens.
What is an algorithmic price curve?
An algorithmic price curve is used to price LODE Tokens. In other words, the price of the LODE Token is linked with an algorithm to the number of tokens that have been minted. The LODE Project will use the N-squared curve, meaning that if the number of tokens doubles, the price will quadruple.
How can I use/sell my AGX Coins?
AGX Coins may be exchanged or sold in a variety of ways.
AGX Coins can be used to settle trade and commerce with participating merchants, many of which may offer discounts for AGX Coin settlement.
AGX Coins may also be sold via LODE affiliated bullion dealers or retailers, who can deliver physical silver and gold bullion products at prevailing market rates. AGX Coins in the future may be deposited with an authorized cryptocurrency exchange and sold or traded for other cryptographic assets like Bitcoin, or for fiat currency.
Can I redeem my AGX Coins for physical silver?
Yes, AGX Coins can be redeemed for physical silver. There are costs associated with redemption like the 200 administration fee as well as shipping and handling costs to send the physical silver. The rate of redemption for a 100-ounce bar of silver is 3,110 AGX Coins. The minimum requirement for redemption is 10 bars.
What is the Retail Price of AGX Coins?
Each AGX Coin is anchored to one gram weight of reserved silver bullion in the vaults. The retail price of AGX Coins is listed on lode.one. The website ticker includes the price of AGX Coins in multiple fiat currencies to provide merchants and speculators with a baseline for price discovery when settling commerce. Merchants are free to price their products and services however they choose and are not subject to mandates or pricing schedules. All parties to AGX Coin settlements are expected to conduct themselves with integrity and honesty. The LODE Association is not a third-party to any transaction between members or users and cannot be held liable for transactions or transmissions between private parties.
What is AGXPay?
AGXPay is the platform in place that facilitates the use of digital silver-money. It enables account creation, the purchase of AGX Coins, the POS-enabled system for merchants to accept AGX Coins as payment, and the mobile wallet app that allows AGX Holders to transact with AGX Coins.
Discover How the LODE Token Can Work for You
Wallet holders and contributors
Those who seek to buy silver and accept and redeem AGX Coins
Barter Trade and B2B Network
Fund Managers and Traders of digital currencies and blockchain assets
Small business owners, manufacturers, professionals, and retailers
Contributors in silver exchange traded funds (ETF’s)
Everyday people that want to save their money via Silver or Gold