XAURUM – XAUR ICO Golden Blockchain Cryptocurrency Formula?
Xaurum, found online at Xaurum.org, is a cryptocurrency technology that promises to represent units of value on “the golden blockchain.” Find out how XAUR works today in our review.
What Is XAURUM?
Xaurum is a gold-based cryptocurrency. Each “Xaurum” is a unit of value on “the golden blockchain”. That unit of value is linked to a specific amount of gold. You can exchange the value of each Xaurum for gold, then gain value by melting it.
The Xaurum Golden Blockchain works as a transparent ledger of all accounts. It lists the amount of gold owned by the Xaurum CommonWealth. The CommonWealth refers to the total pool of gold backing the Xaurum cryptocurrency.
The goal of Xaurum is to continuously buy more gold and increase the value of the token. Users can mine Xaurum. However, the company maintains cooperative control of the money supply.
In addition, miners never actually mine Xaurum directly. Instead, you mine altcoins, then swap your altcoins for gold to increase the Xaurum CommonWealth value. Then, new Xaurum tokens are issued.
Obviously, Xaurum has a lot of unique features going on here. Let’s take a closer look at how Xaurum works.
Xaurum advertises all of the following features:
Xaurum’s value is based on gold and is exchangeable for gold. The company mentions 1g of 99.99% pure gold. However, they also mention that their gold supplies are continuously increasing – so it’s unclear if each Xaurum is currently linked to that value, or if that value is going up or down with the money supply.
Xaurum claims that the gold-based value of Xaurum “is growing with its use and coinage.”
You can exchange your Xaurum for gold and have that gold delivered anywhere in the world.
As more Xaurum are coined and enter the exchange, the value of one Xaurum (in terms of its relative value in gold) will increase. Economically, this doesn’t make a lot of sense unless the Xaurum gold reserves were increasing at a rate faster than the Xaurum money supply.
New Xaurum is mined at the “goldmine”. The more miners there are, the higher the mining profitability will be.
Transaction fees are collected by the Xaurum CommonWealth. The value of the transaction fees is distributed to all users (although we can’t find how much of the transaction fees are distributed to users). It appears the fees just go into the Xaurum CommonWealth, at which point they’re used to buy gold to increase the value of Xaurum.
Xaurum is based on the Ethereum blockchain.
The First Digital Commonwealth:
Xaurum makes a big deal out of the fact that it’s based on a commonwealth. Xaurum describes itself as “the first digital commonwealth” because it’s represented “by an open non-profit” organization called the Auresco Institute. It’s unclear how the Auresco Institute is connected to the Xaurum CommonWealth.
Obviously, the features listed above are very vague. This is the information listed on the front page of the website. There are limited technical details about how Xaurum works. We also don’t know crucial information – like how the transaction fees are split among users.
There’s slightly more information in the Xaurum whitepaper. However, the whitepaper is strange. The first 12 pages of the 24 page whitepaper are spent discussing the history of money.
You’ll read sentences like, “The Lydian Lions, coined by the Lydian King Alyattes are arguably the first coins, they differ from proto-money such as shells, axes, metal cattle, obsidian, wives etc. by the distinguishing mark of authority that gives them unity of a standard.”
Poor grammar aside, it seems strange that the Xaurum whitepaper teaches an extensive history lesson. Fortunately, the whitepaper provides a more detailed explanation of how Xaurum works. We’ll get into more of it below.
How Does XAURUM Work?
Xaurum is unique among cryptocurrencies. The currency comes with a monetary policy. That monetary policy, according to the Xaurum whitepaper, is designed “to sustain the common interest by increasing the commonwealth.” The “commonwealth”, which is also sometimes spelled as “CommonWealth” on the official Xaurum website, includes gold reserves that serve as the basis of Xaurum’s value. As the value of the commonwealth increases, the value of Xaurum will naturally rise.
Ultimately, Xaurum is a representative cryptocurrency based on an increasing supply of gold. It’s designed first as a storer of value.
The currency uses distribution of seigniorage to achieve its goal of becoming a store of value. The primary goal of the seigniorage system is to increase the supply of gold behind Xaurum. The other goals of the seigniorage system include “regulating the particularity of the interests of economic agents into unity.”
What about mining? Xaurum’s mining is done by mining other cryptocurrencies for value, and then by exchanging their value into gold and issuing more Xaurum. The higher the number of miners mining, the higher the seigniorage given to them. More miners means more market activity and more volume. The increase of volume should be proportional to the seigniorage given to sustain the price of Xaurum.
If Xaurum isn’t created through mining, then how is it created? New Xaurum is created through minting. To mint, you’ll need a masternode and ownership of 1,000 Xaurum.
Why do you need to own 1,000 Xaurum to mint? The whitepaper explains that when a minter has 1,000 Xaurum, it’s proof that “he has the good of the whole in mind, as he profits both from the increase of the commonwealth and from seigniorage.” It’s in that individual’s interest to sustain the market price of Xaurum.
Ultimately, coinage is restricted based on the amount of gold reserves – so new Xaurum will not be minted until there’s an adequate supply of gold reserves.
And yes, Xaurum claims to have an auditing system in place. The gold reserves are stored at Loomis, a Stockholm-based cash management company, in 1kg and 0.5kg bars. The status of the gold storage is updated daily.
Xaurum is a unique cryptocurrency and blockchain project that bases its value off the value of real gold. It’s an asset-backed cryptocurrency. There are some unusual things about Xaurum. The mining process, for example, doesn’t actually involve mining Xaurum. Instead, you mine altcoins and then trade those altcoins for gold, increasing the total supply of the “Commonwealth” which supports the Xaurum currency.
The other unusual thing about Xaurum is that it appears anyone can create new Xaurum as long as they have a masternode and 1,000 Xaurum.
Ultimately, Xaurum is one of several gold-backed cryptocurrencies available today. You can learn more about Xaurum by visiting the organization online at Xaurum.org.