Smart Contract & Technology

XRBG is an ERC-1400 token on both the Ethereum and Polygon blockchains. ERC-1400 is a security token standard designed for tokenizing regulated assets. It introduces compliance features such as transfer restrictions, forced transfers, and document management, making it suitable for securities and other regulated assets. While ERC-1400 offers these additional features, it remains compatible with the ERC-20 standard. This means it can function like any regular ERC-20 token for basic transfers and balances, while providing enhanced controls for regulatory compliance. This ensures seamless integration with existing ERC-20 infrastructure while enabling compliance-specific functionality.

Contract Addresses:

• Ethereum: 0xFe2A78E07b35C79b91BAf53BF42D9943fB167B10

• Polygon: 0x4BA14eA7b35aA27aB76b4df9E5Cffa8cd9E28867

The XRB Gold smart contract declares basic token characteristics such as name, symbol, and decimal precision. It tracks the total number of tokens and token balances for each Ethereum and Polygon address holding XRBG. The contract also allows address owners to transfer portions of their XRBG balance to other addresses.

As XRBG is compatible with the standard ERC-20 protocol, many exchanges, wallets, and applications that support Ethereum and Polygon already have built-in support for viewing and transferring XRBG.

The benefits of building on Ethereum and Polygon using the ERC-1400 protocol include:

• Regulatory Compliance: ERC-1400 offers built-in compliance features, ensuring that ownership and transfers of the gold token adhere to local and international regulations, such as KYC/AML requirements.

• Enhanced Security: The token standard includes mechanisms for handling lost or stolen tokens, forced transfers, and restricted transfers, providing better security and control over gold ownership.

• Wider Ecosystem Access: Building on Ethereum and Polygon enables access to a vast network of wallets, exchanges, and decentralized applications (dApps), facilitating seamless integration and widespread adoption.

• Lower Transaction Costs (Polygon): By utilizing the Polygon network, users benefit from significantly lower transaction fees compared to Ethereum while still being connected to Ethereum's security and liquidity via cross-chain compatibility.

• Scalability (Polygon): Polygon's Layer 2 solution provides higher throughput, making it suitable for high transaction volumes without the congestion issues often faced on Ethereum.

• Proof of Ownership: ERC-1400 ensures transparent and verifiable ownership of gold, with each token representing a direct claim to a physical asset, making it ideal for gold tokenization with clear legal backing.

• Interoperability and Liquidity: Both Ethereum and Polygon have extensive DeFi ecosystems, allowing the token to be easily traded, staked, or used as collateral. This enhances liquidity for gold ownership and enables additional financial opportunities.

XRBG is available on Ethereum and Polygon and may be launched on other chains in the future if there is market demand for it.

Ownership of XRBG represents fractional ownership of corresponding Good Delivery gold bars in storage. As customers buy and sell fractions of gold through XRBG transactions, holders may own portions of multiple gold bars. XRB DAO will periodically rebalance XRBG tokens, or do so upon redemption, to prioritize fractional ownership of single bars before reflecting ownership in others for each unique address. This means that redemption will first apply to fractions of a single bar before moving to another. If holders don't own a full 12.5kg gold bar, they'll possess a pro rata share of that bar based on their XRBG token holdings. XRB DAO may occasionally reallocate XRBG tokens to different gold bars to account for token transfers, decentralized token swaps, conversions, and other XRBG transactional activities.

XRBG holders can always visit xrb.gold to verify their holdings and access other supporting information related to their assets.

The XRB Gold smart contracts include several distinctive features, with additional details available in the smart contract explorer (Ethereum, Polygon).

Here's a more detailed explanation of each function in the smart contract for the XRBG token, with emphasis on compliance and legal considerations:

• Mintable: This function allows for the creation of new XRBG tokens. It's used when new gold reserves are acquired and need to be represented digitally. This ensures that the token supply always accurately reflects the amount of physical gold backing it.

• Burnable: This function enables the destruction of XRBG tokens. It's typically used when gold is redeemed or removed from reserves, maintaining the 1:1 relationship between tokens and physical gold.

• Pausing Transfers: This function allows for the temporary halting of all token transfers. It's a safety measure that can be activated during maintenance periods or if a security threat is detected, protecting users' assets.

• Blacklisting: This function restricts specific addresses from transacting with XRBG tokens. It's important to note that this function will be used in the following cases:

  • All existing addresses blacklisted and sanctioned by international financial crime enforcement authorities will be automatically blacklisted.

  • Any addresses that our internal fraud and criminal detection systems deem as suspicious or related to any blacklisted addresses will also be blacklisted and reported to the relevant authorities for further investigation.

  • In cases of detected criminal activity, when mandated and enforced by a legal court order compelling XRB DAO to blacklist an address from moving XRBG holdings.

  The relevant authorities will determine whether there is merit in maintaining the blacklisting for addresses flagged by our internal systems.

• Force Transfers (Asset Seizure): This function allows for the forced movement of tokens between addresses. It serves two crucial purposes:

  1. Legal Compliance: Like blacklisting, this function will be executed in cases of criminal activity and only when mandated by a court order. It provides a mechanism for legal authorities to seize assets if necessary.

  2. Theft Protection: This function is highly advantageous if an XRBG holder suffers a hack where their tokens have been illegally transferred out of their wallet. In such cases, if the holder reports the incident to the relevant authorities and a thorough investigation determines that the XRBG holder had indeed been hacked, a court order can be issued to return the XRBG assets to the rightful owner using this function.

• Ownership Transfer: This function allows for the transfer of the smart contract control to a new address. It ensures continuity of management and can be used if there are changes in the organizational structure of XRB DAO.

• Renounce Ownership (for Migration): In the case of a network migration, and/or update, this function permanently removes the ability for any party to make any further changes to the original XRBG smart contract. It would be used if the XRB Gold contract is successfully migrated to prevent further interactions with the contract, thus avoiding activity in the obsolete contract. For safety reasons and better performance, XRB DAO is allowed to migrate XRBG tokens to another blockchain network if required, subject that any potential migrations on the network won't disrupt the chain of ownership for any XRBG holder, as all ownership and transaction information is stored on the blockchain and remains unalterable. In the event of a migration, all XRBG tokens—and thus the ownership they represent—in the existing contract will be swapped 1:1 into any new contracts, and to the existing owner's wallet on the migrated network, thereby preserving the integrity and chain of ownership.

These functions collectively ensure regulatory compliance, maintain the integrity of the gold-backed token system, and provide necessary control mechanisms for XRB DAO, while also protecting the rights and assets of XRBG token holders.