Lumi Smart Contract Overview

Smart Contract Implementation & Fractionalized Gold-Backed Rights

🔐 Smart Contract Infrastructure: Tokenization, Redemption & Proof of Reserve

LumiVault’s smart contract infrastructure is purpose-built to facilitate the secure, transparent, and immutable tokenization of physical gold reserves, while ensuring seamless on-chain redemption for real-world gold.

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🪙 Gold-Backed Tokenization

• The $LVT token is fully backed by 80 tonnes of insured physical gold, with each token representing a fixed gold weight ratio. • Tokens are deployed on Ethereum Layer 2 to ensure gas efficiency and fast execution. • As new gold reserves are verified and added, corresponding $LVT tokens are minted, maintaining the 1:1 gold-backing ratio. • When users redeem tokens (min. 1,000 $LVT) for gold-backed assets, the smart contract burns the equivalent supply.

This mint-burn mechanism ensures that the circulating token supply always reflects the actual reserves held in secure custody.

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🔁 On-Chain Proof of Reserve (PoR)

• LumiVault integrates real-time Proof of Reserve directly into the Dapp interface. • Gold reserves held in custody are represented by PAXG tokens — a regulated, gold-backed digital asset issued by Paxos. • Every inflow/outflow of reserves is on-chain verified and reflected transparently, enabling users to track the exact PAXG backing ratio in real time. • Smart contracts enforce hard constraints that prevent minting beyond validated reserves.

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🧱 Infrastructure Principles

• ✅ No staking, no inflationary emissions

• ✅ Real asset redemption model (1,000 $LVT ↔ PAXG)

• ✅ Non-custodial, permissionless redemption

• ✅ Immutable mint/burn contract logic

• ✅ Auditability via decentralized oracles & PoR dashboard

• ✅ Ethereum Layer 2 scalability with secure bridging

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Through this architecture, LumiVault transforms tokenized gold into a trust-minimized, on-chain asset class — enabling users to access, track, and redeem physical gold in a fully decentralized manner, without relying on centralized intermediaries or opaque reserves