How Does it Work?
Its simple. There is a premine (yes, it's because of the nature of this coin! Read on), which will be sold, slowly, bit by bit during the POW phase. The BTC collected on a publicly known address will be divided to 4 parts: 80-10-5-5 %.
80% will go to the Stabilizer Fund, which will be directly converted to GOLD, and of course it will be on a publicly announced account, and everybody could check 24/7, how much GOLD is on it!
10% will go to the dev directly (I think of it as a salary, and a fund to upgrade the coin from time to time),
5% will go to Charity (Cancer Foundations, Animal shelters, Homeless shelters, there will be a vote to choose which one)
5% will go to a development fund, it will be used for future improvement like anonimity (its not in it yet), merchant acceptance, etc.
There also will be a DONATION account, both XGR and BTC, everyone welcome to send a donation, if you benefited from this coin in any way! The DONATION will be divided as the premine!
Why I choose this method?
I think all of the scams we experienced recently, are because the individuals who launched the hundreds of altcoins forgot one thing. How they will get a steady income out of their own coin? As they realized they can not have it directly from mining or trading then they did not have any other choise but to trick the money out of your pockets. I created this coin to prosper for a long time. For reaching this goal, I have to put time and money in this project, but everyone will have the benefits of my hard work! For my work I think I deserve a percent of the profit you make with my coin. Straight and simple.
Why do you need to back up a cryptocurrency?
Cryptocurrencies do not have value, only when a community decide to actively trading it and the developer making improvement to the coin and support it on a daily basis.
Goldreserve will have a basic value which will be there even if no one trading it, using it in any way. That gives a huge advantage to it!
How can I get my gold when I want to sell at a minimum price?
Backing up by gold means that a certain amount of gold will be the support of this coin, and from that I can calculate the price of 1 GoldReserve coin. When someone want to sell at a minimum buyback price I will pay for those coins with Bitcoin.
What happen with the coins you buy back?
It depends on the situation at the market. A. If the coin is a disaster and no one want to trade or use it, then they go back to the premine wallet and will stay there until something positive happening around GoldReserve. B. If there is only a temporarily dip in price, then after the market stabilize, I will sell those coins and the amount I got for them goes back to the Stabilizer Fund.
Why don't you make it simple, just keep the premine in Bitcoin and buy back with that if needed!?
Bitcoin is great, it is the godfather of all altcoins. The price of one bitcoin may go up to 10,000 USD one day or maybe even more! But it's price fluctuate and if there is some unknown events occur, it may go down hard.
Gold is a well known commodity, the maximum amount of Gold is less and less each year, make it's price higher and higher every year. Gold is one of the most precious metal in the world. It is tangible, carry a great store of value and it is accepted all over the world.
Gold had some price fluctuation over the past years but if you look at the long term graphs, its price went higher and higher after each dip.
I think gold makes GoldReserve a better cryptocurrency over any other, because it offers stable price and a security which no other cryptocurrency have at the moment.