Announcing 2nd New HGT feature: Discount and Burn on GOLDX purchases!

TC, Robin, and Ridwan at Consensus

While at Consensus 2018 in New York, we shared big news of our new utility for HGT, a discount and burn feature. It means that by spending your HGT, you’re entitled to a discount to the fees for purchasing GOLDX, our fully-allocated gold backed token.

The GOLDX smart contract was launched at the beginning of the year. Since then we have gathered feedback for a more refined and ever improving sales process. The new process will also come with the added HGT utility, adding value for HGT token holders (more on HGT here).

First, let’s go over how GOLDX is currently sold:

1. You go to “Buy GOLDX” at goldx.io. If you’re a new customer, you submit KYC and accept the T&C’s
2. You then receive successful confirmation of KYC and a quote for GOLDX
3. On receipt of the quotation you send the required ETH/BTC to the wallet address stated on the quote
4. You send the txhash link to hello@goldx.io as confirmation of payment
5. HelloGold then sends you GOLDX as per quotation

In the last month our tech team has been hard at work building an exchange smart contract for buying and selling GOLDX. The exchange will allow whitelisted wallet addresses to purchase GOLDX by sending ETH to the smart contract automatically.

So how will the exchange accommodate HGT utility?

If you hold HGT, not only can you pay the fees in HGT, you will also get a 50% discount on those fees.

To buy 1 ETH worth of GOLDX, you will need to pay 0.05 ETH in fees. Assume that 0.05 ETH will buy 500 HGT. If you elect to pay the fees in HGT, you will need to pay only 250 HGT.

On the exchange you will have the option to pay a) 1.05 ETH, or b) 1 ETH + 250 HGT for your GOLDX.

The exchange we’ve built allows you to buy GOLDX using ETH or ETH and HGT. It provides you with the flexibility to get the best deal based on your HGT holdings.

Some examples

Assumptions:

• 1 ETH is worth 10 GOLDX (at gold spot price)
• 1 ETH is worth 10,000 HGT
• Buy Fee for GOLDX is 5% (on top of gold spot price)

Nora has registered KYC on the GOLDX exchange. She wants to buy 10 GOLDX. The price she has to pay without discount is: 10 * 1 * 1.05 = 1.05 ETH (of which 0.05 ETH are fees)

Scenario 1:

Nora only has 2 ETH and no HGT. She has to pay the full price, ie 1.05 ETH to get her 10 GOLDX

Scenario 2:

Nora has 2 ETH and 1,000 HGT in her wallet. She pays 1 ETH plus 250 HGT (instead of 500 HGT — fees get a 50% discount). In ETH terms, she will have paid a total of 1 + 250 * 0.0001 = 1.025 ETH, thus saving 0.025 ETH.

At the end of the month, half of the HGT she paid (125 HGT) will be burned.

Scenario 3:

Nora has 2 ETH and 100 HGT in her wallet. She pays 1 ETH plus 100 HGT (fees at a 50% discount), plus 0.03 ETH to cover for the remaining fees without discount. In ETH terms, she will have paid a total of 1 + 100 * 0.0001 + 0.03 = 1.04 ETH, thus saving 0.01 ETH.

At the end of the month, half of the HGT she paid (50 HGT) will be burned.

This new feature brings various advantages to HGT holders:

1. It allows the holder of HGT to buy the only fully allocated gold-backed token on the market, GOLDX, at a discounted price.
2. Because of the burning mechanism, each purchase of GOLDX using HGT to pay for fees diminishes the number of HGT in circulation, thereby increasing the per HGT amount of any GOLDX airdropped as rewards to HGT holders.
3. Adding a valuable utility to HGT (buying gold at a discounted price) ‘unlocks’ the price cap previously implied by the finite amount of GOLDX that could possibly be airdropped to HGT holders.
4. Making GOLDX more affordable stimulates the purchase of GOLDX, thereby increasing the AUM of HelloGold. This automatically implies a higher discretionary monthly airdrop of GOLDX to HGT holders.

This is the second HGT feature announced this year (have a look here for more on the milestone burn feature), but it isn’t the final one…

We’re listening to our community and will continue to do our best for all stakeholders. We are confident that as knowledge of these new features increases within the crypto community, and as HelloGold proves the viability of its business model as well as the worthiness of its cause, HGT will get the recognition it deserves.

Let us know your thoughts and keep an eye out for more coming soon!

You may also join our community if you haven’t already: https://t.me/HelloGoldOfficial