# Asset & Tokenization Model

### Smart Contract Architecture for Gold Pegging

**LumiVault** ensures that its **80-tonne gold reserve** is securely tokenized and fully backed by a fixed **500 million $LVT token supply**.

&#x20;**Each $LVT = 0.16g of physical gold**, representing a **fractional ownership** claim over legally verified reserves.

This gold peg guarantees that $LVT maintains:

* **Intrinsic value**
* **Full redemption eligibility**
* **Secure and verifiable backing**

***

#### 🔗 Proof-of-Reserve (PoR) Protocol

The tokenization of LumiVault’s reserves is enforced through an **on-chain Proof-of-Reserve (PoR)** framework:

* **Gold reserves are managed via multi-signature vaults** operated by independent custodians
* **Periodic audits** are conducted to confirm physical reserves
* **Oracle feeds** (e.g. Chainlink) update reserve data on-chain in near real-time
* All data is publicly visible and **tamper-proof**, ensuring user trust and regulatory integrity

***

#### 💱 Redemption via Smart Contract

Beyond investment and trading, **$LVT token holders can redeem their tokens for physical gold** via a dedicated redemption contract.

* Tokens are **burned** at redemption
* Redemption is calculated based on the current peg (**1 $LVT = 0.16g**)
* **Minimum redemption threshold: 1,000 $LVT**\
  ▪ Ensures logistical efficiency\
  ▪ Preserves vault stability and liquidity

***

This architecture enables LumiVault to maintain a **secure, transparent, and decentralized linkage between physical gold and its digital representation**, positioning $LVT as a next-generation **real-world asset (RWA)** token backed by provable value.

<figure><img src="https://174088144-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYvmCb6HnibQFgW1uIf2t%2Fuploads%2FokaoH7eKAWjIfxkVUzdt%2F%EB%A3%A8%EB%AF%B8%EB%B3%BC%ED%8A%B8%20%EC%9D%B4%EB%AF%B8%EC%A7%80.png?alt=media&#x26;token=961b9992-3526-4260-a38e-33b2513e740a" alt=""><figcaption></figcaption></figure>

### LumiGold Asset Tokenization Model&#x20;

#### Real-World Gold Rights → Tokenized Claims

* **Source Asset**:\
  80 tonnes (**80,000 kg**) of **legally registered and verifiable gold mining rights**, tied to active exploration and extraction sites
* **Tokenized Representation**:\
  The entire reserve is fractionalized into **500,000,000 $LVT tokens**
* **Backing Ratio**:\
  **1 $LVT = 0.16g of gold**\
  (Based on 80,000 kg ÷ 500M tokens)
* **Valuation Basis**:\
  Each $LVT is dynamically priced based on the **live spot price of gold** in USD terms

***

#### 📈 Price Peg Mechanism

The price of **1 $LVT** is dynamically pegged using:

* **Chainlink or LayerZero oracle feeds**
* **Real-time gold pricing**, e.g. from **PAXG market reference**
* &#x20;Internal **reserve pricing formula** ensures on-chain accuracy

***

#### 🛒 Purchase & Distribution Model

* **Primary Sale Only**:\
  $LVT is acquired **exclusively** via the official **LumiVault DApp** (not on DEXs yet)
* **Accepted Payments**:\
  **USDT**, **USDC**, and **ETH**
* **No Staking Rewards**:\
  LVT does **not inflate** via staking emissions — preserving **scarcity and long-term value**

***

#### Proof-of-Reserve (PoR) System

* **Vault Data Transparency**:\
  On-chain access to **audit reports**, **mining licenses**, and **storage documentation**
* **Live Oracle Sync**:\
  Constantly updated feed linking **real-world vault data** to **on-chain indicators**
* **Dashboard Access**:\
  Anyone can verify **live reserve backing** of all circulating $LVT at any time

***

#### Redemption Through PAXG (Gold-Backed Token)

* **Minimum Redemption Threshold**:\
  Users must hold **≥ 1,000 $LVT** to initiate redemption
* **Redemption Format**:\
  Users exchange $LVT for **PAXG** — a gold-pegged token **redeemable for physical gold** via **Paxos**
* &#x20;**Deflation Mechanism**:\
  All redeemed $LVT tokens are **permanently burned**, reducing total supply and increasing scarcity

***

#### &#x20;Revenue & Sustainability

Without staking emissions, LumiVault’s revenue model includes:

* **Direct token sales** (from treasury & reserve allocations)
* **Redemption service fees** (in **PAXG** or **stablecoins**)
* **Institutional B2B gold access deals** (off-chain fiat inflow via licensing or supply contracts)

***

| Feature               | Benefit                                                 |
| --------------------- | ------------------------------------------------------- |
| No staking inflation  | Preserves $LVT value and avoids yield-based devaluation |
| Real-world pegging    | Strong market trust via PAXG-linked redemption          |
| Transparent valuation | Oracle-synced pricing + audit-backed proof-of-gold      |
| Asset burn on exit    | Redemption reduces supply, creating scarcity            |
| Institutional appeal  | Lower compliance risks, clear redemption pathway        |
