KingGoldCoin White Paper

I. Introduction

As the digital currency market continues to evolve, stablecoins, characterized by their relatively stable value, play an increasingly vital role in the cryptocurrency ecosystem. This white paper introduces KingGoldCoin, a stablecoin backed by gold reserves, designed to provide stability and reliability in digital transactions.

II. Overview of KingGoldCoin

KingGoldCoin is a stablecoin pegged to the London Bullion Market Association (LBMA) gold standard. Its value is supported by sufficient gold reserves, ensuring stability and trust in its valuation.

III. Transaction and Consumption Mechanisms

1. Transaction Users

Transaction users primarily engage in KingGoldCoin trading on the Solana Exchange. Custodian institutions and the KTC Network platform can also trade KingGoldCoin on this exchange or through their certified wallets. The gas fees for these transactions are borne by the buyer.
The exchange supports various trading methods, including fiat-to-crypto and crypto-to-crypto transactions. Trading parties can negotiate transaction details based on their needs and choose whether to disclose transaction prices. To ensure the legality and security of transactions, all users trading KingGoldCoin must use KTC Network wallets verified through Know Your Customer (KYC) processes.

2. Consumption Users

The KTC Network platform integrates a wide range of merchants and products, all of which accept KingGoldCoin as a payment method. Consumption users can utilize KingGoldCoin for purchases on the platform, benefiting from the convenience and efficiency of instant payments.
When consumption users make payments with KingGoldCoin, the KTC Network platform charges a fee of 0.6% to support its operations and development.

IV. Issuance Rules for KingGoldCoin

1. Gold Custody and KingGoldCoin Issuance

Custodian users deposit N (where N is a large quantity) * 0.01 troy ounces of LBMA-standard gold into a designated custodian institution, receiving a custody certificate in return.
Custodian users transfer the custody certificate to the KTC Network platform. Through collaboration with financial institutions issuing custody certificates, the platform acquires the rights to N units of gold. Based on the daily LBMA gold price, the platform issues KingGoldCoin to custodian users at a ratio of 1 KingGoldCoin = 0.000001 units of LBMA-standard gold.
When redeeming KingGoldCoin, custodian users must pay a 0.6% issuance fee in KingGoldCoin to the platform. This fee supports platform operations, technical maintenance, and market promotion.

2. KingGoldCoin Redemption Mechanism

If a custodian institution wishes to redeem gold, it may return the corresponding KingGoldCoin units to the KTC Network platform at any time, along with a 0.6% fee in KingGoldCoin. Upon verification, the platform will return the custody certificate to the custodian institution, which can then use the certificate to redeem the gold from the designated institution.