GOLD & METALS RESERVE

Gold & Metals
Reserve

Transparent SOST-side accumulation today. Tokenized gold reserve planned. Governed spending is not active. Every mined block allocates 25% of issuance to an on-chain Gold Vault by consensus. The design below — sale governance, an Ethereum custody vault, tokenized-gold rails — is the roadmap, not something running today.

ACCUMULATING | Governed spending NOT active · No gold reserve created yet · Nothing being sold
Protocol Strategic Reserve — Gold Accumulation + Growth / Listing / Compliance compartments. Both remain LOCKED / NOT ACTIVE.
CURRENT STATE
The Gold Vault accumulates SOST today. Governed spending is not active. No SOST from the vault is currently being sold or moved.
STATUS

Reserve Status

SOST Gold Vault
ACCUMULATING
25% of every block, by consensus
Governed Spending
NOT ACTIVE
Activation height INT64_MAX (deferred)
Tokenized Gold Safe
NOT CREATED
No Ethereum contract exists yet
PAXG / XAUT Holdings
0 / PENDING
Nothing held in reserve
Governance Gates
DEFERRED
G1–G5, planned V15 (block 20,000)
Protocol Registry
PREPARED
No operations executed yet

Governance detail: the accumulation side is consensus-enforced. The spend side (gates G1–G5) is scaffolding + audit only, sentinel-disabled on mainnet. G3b (accumulated cap / rate-limit) is the current technical blocker before any activation. Full policy: GOLD_METALS_RESERVE_POLICY.md.

RESERVE MODEL

Protocol Strategic Reserve

What has been called the "Gold Vault" is, more precisely, one Protocol Strategic Reserve — the SOST the protocol accumulates on-chain — with two clearly separated compartments. Everything below is planned / NOT ACTIVE. Nothing is partitioned, sold or moved today.

Gold Accumulation Reserve — minimum 50%
Earmarked for a future metal reserve (PAXG / XAUT only). Its future measure is grams of protocol-held gold — a treasury metric, not a peg and not a redemption claim. No individual claim on gold, no “1 SOST = 1 gram”, and SOST is not gold-backed.
Growth / Listing / Compliance Reserve — maximum 50%
Earmarked for a future set of ecosystem costs: compliance, MiCA/legal, audits, infrastructure, aggregators, serious listings, initial liquidity and security. Rationale: the founder should not have to personally fund every listing, legal, infrastructure or compliance cost for the protocol to survive and grow.

The split is a floor/ceiling policy, not a physical partition: gold ≥ 50%, growth ≤ 50%. Reserve status today: LOCKED / NOT ACTIVE — the spend path is disabled at the consensus level (activation height INT64_MAX), not merely by policy.

ECONOMIC REALITY
The reserve is denominated in SOST. Until SOST has an external market price and liquidity, the reserve is potential capital, not immediately spendable capital. Growth/liquidity work is therefore the first unlock; gold accumulation becomes meaningful once conversion can happen without damaging the market.
GOVERNANCE (design, not active)

Veto, not spending power

Weighted holder approval
Vote weight = SOST held at a snapshot. Quorum ≥ 15%, approval ≥ 51% YES weighted. Not miner-block voting.
Hard limits
Weekly cap ≤ 1% of the relevant compartment, allowlisted destinations only, 72h timelock, mandatory public registry.
Founder / guardian safety veto
A time-boxed, public, reasoned veto only — can block a dangerous execution, cannot approve or spend. Recommended: a guardian set (2-of-3 / 3-of-5), not a single key.
Voting status today
Binding weighted voting is not implemented: it requires snapshot-balance support that does not exist yet. The wallet GVOTE signal is a non-binding temperature check only.

The mother rule: nothing leaves the reserve on a single key — not the founder, not a whale, not a simple majority alone. It leaves only with weighted holder approval + allowlisted destination + weekly cap + timelock + public registry + no guardian veto. Full policy: GOLD_METALS_RESERVE_POLICY.md.

MODEL

Two Vaults, Two Responsibilities

SOST Gold Vault
Lives on SOST. Receives the 25% emission. Can only ever move SOST through Gold Vault Governance. Accumulation active; governed spending not active.
Tokenized Gold Reserve
Future Ethereum/EVM vault. Planned Safe multisig 3/5 + timelock + whitelist. PAXG primary, XAUT secondary optional. Not created yet — 0 PAXG/XAUT held.
SOST Gold Vault ↓ governed proposal (G1–G5) ↓ controlled OTC / Atomic Swap (no public AMM, no wrapped SOST) ↓ PAXG / XAUT received ↓ Ethereum Safe multisig (sealed) → public Protocol Registry entry

SOST/PAXG and SOST/XAUT are not the vault. They are future OTC / Atomic-Swap conversion rails. The real reserve is the Ethereum Safe where the tokenized gold ends up. No public AMM at the start — first small, founder-controlled operations with a public record.

GUARANTEES

What Cannot Happen Today

✕ No automatic sale of vault SOST
✕ No public AMM (SOST/PAXG, SOST/XAUT)
✕ No one-click / discretionary spending
✕ No unlocked gold reserve to move
✕ No hidden treasury movement
✕ No single key able to move reserve assets
PLANNED

Future Tokenized Gold Vault

Safe multisig 3/5 — planned
Timelock — planned
Whitelisted destinations — planned
Public dashboard — planned

Ethereum mainnet is the initial choice for the Safe because of issuer nativeness (PAXG/XAUT are ERC-20 on mainnet), liquidity, and mature custody tooling. No single key should be able to move reserve assets. This vault does not exist yet. Technical design: Safe multisig design (Safe 3/5 + timelock + allowlist).

FORGE

Gold Reserve Forge (PLANNED / NOT ACTIVE)

The Gold Reserve Forge converts a limited amount of the SOST Gold Vault balance into tokenized gold reserve assets (PAXG / XAUT), progressively and verifiably. It is a reserve-conversion framework — not a token sale. Settlement is atomic (a SOST↔PAXG/XAUT atomic swap), the gold leg lands directly in the Tokenized Gold Safe, and every operation is published as a Forge Proof. We are not selling SOST; we are forging a verifiable tokenized-gold reserve.

It does not mint new SOST. It does not create a claim on gold. It is not a peg. It is not a dividend, yield or investment return. It is planned / not active. A Founder Test is targeted no earlier than block 20,000, subject to Safe setup, legal review and internal approval; a limited mode may be considered no earlier than block 25,000, only if the founder test, legal review and registry process are successful; public participation remains future / legal-review dependent. None of these are commitments or guaranteed activation dates.

1 · CURRENT FORGE WINDOW
WindowForge #001
ModeFounder Test
StatusPlanned / earliest target — NOT ACTIVE
Blockno earlier than 20,000 (subject to review)
Max amount100 SOST
SettlementPAXG only (atomic swap)
DestinationTokenized Gold Safe
Public participationdisabled

Example only — no window is open, all figures are illustrative/planned (not commitments), nothing executes today.

2 · FORGE RULES
Capped: weekly min(500 SOST, 0.5%), monthly 2%
Settlement: atomic swap, PAXG primary / XAUT optional later
Destination: Safe multisig only
Protocol Registry entry required
Emergency stop active
No AMM · No CEX dependency
No earlier than block 20,000 — FOUNDER TEST
1 symbolic op, founder only, 50–100 SOST, PAXG via atomic swap → Safe, Forge Proof published. Subject to Safe setup, legal review and internal approval. Planned, not active — not a commitment.
Block 20,000–25,000 — OBSERVATION
Audit the circuit: Safe works? Forge Proof clear/auditable? no flow errors? no legal/commercial confusion? Public status stays "founder-only test, public Forge not active."
No earlier than block 25,000 — LIMITED (may be considered)
May be considered no earlier than block 25,000, only if the founder test, legal review and registry process are successful. Same caps, whitelist / sealed-bid first, atomic settlement, gold → Safe only, emergency stop. Not a public AMM.
Later — PUBLIC PARTICIPATION
Only after legal/compliance and a larger community. Same caps, same atomic settlement, same Forge Proofs. Not scheduled.
3 · FORGE PROOFS

Every completed conversion publishes a Forge Proof — an on-chain-verifiable record (the proof is the point, not a countdown): SOST txid · Ethereum txid · PAXG/XAUT amount · Safe address · timestamp · status.

4 · RESERVE GROWTH TIMELINE
No Forge Proofs yet — no tokenized-gold reserve operations have been executed.
5 · PROOF-OF-RESERVE METER
SOST Gold Vault balance
observable on-chain
PAXG / XAUT Safe balance
0 — Safe not created
Forge Proofs
0

Factual metrics only. This is not a peg, implies no backing guarantee, redemption right, or guaranteed value, and confers no claim on the reserve.

6 · RESERVE SUPPORTERS

Optional public recognition only — a participant may choose to be acknowledged in the Protocol Registry. No financial rights, no priority profit, no claim on the reserve.

STATUS: NOT ACTIVE — REQUIRES (+ EMERGENCY STOP)
G3b complete · Safe multisig created · legal/compliance review · first symbolic test · Protocol Registry live · public notice period · guardian/governance emergency stop

Not an investment return, claim on gold, equity, dividend, yield, or guaranteed profit; no gold-backed SOST; no new SOST minted. Full design: Gold Reserve Forge design.

REGISTRY

Protocol Registry Preview

EMPTY PREVIEW — NOT LIVE DATA
No tokenized-gold reserve operations have been executed yet.
The table below is an empty schema preview of how a future operation would be recorded. It contains no real entries.
SOST txidEVM txidTokenAmountPrice/refVaultNew balanceStatus
No tokenized-gold reserve operations have been executed yet.

When operations begin, each row will publish: SOST txid · EVM txid · token received · amount · price/reference · vault address · resulting balance · notes/status. See the full Protocol Registry.

SIGNAL

Gold Vault Signal (PLANNED / NOT ACTIVE — PREVIEW)

A planned voting section in the explorer where SOST holders signal approval for strictly limited reserve operations using signed wallet votes. Voting is by wallet signature, weighted by SOST held at a snapshot block — not by mining, hashrate or coinbase. A dominant miner gains no voting power. The Signal can only approve operations inside fixed safety rails; it never grants open spending power.

This is a non-interactive design preview. No vote is live; early phases are off-chain signed signalling (advisory + publicly verifiable), not consensus. 1 SOST at snapshot = 1 vote · 1 wallet = 1 signed vote.

Proposal GV-001 — Founder Test / Planned
PREVIEW · NOT LIVE
ActionConvert up to 100 SOST into PAXG
DestinationTokenized Gold Safe · verified when live (NOT CREATED YET)
Snapshotvoting_start − 1
Your voting power— (connect wallet, Phase 2)
StatusPreview / NOT ACTIVE
Illustrative tally (not real votes):
YES 72%
NO 28%
Voting not live — Phase 1 preview
📝 Open Wallet to Sign Signal Receipt
Real voting is not live. You can sign a non-binding signal receipt in the SOST wallet (that is where your key is — the explorer never holds keys). It produces a signed proof only; it is not weighted, not a vote, and executes nothing.
WHAT CAN BE VOTED (strictly limited)
1 · Convert Gold-Vault SOST into PAXG/XAUT (a Forge window)
2 · Move PAXG/XAUT to another verified Safe
3 · Emergency migration to a verified emergency Safe

Every proposal is bounded by the reserve rails: only PAXG/XAUT · only allowlisted verified Safe destinations · weekly cap · timelock · Protocol Registry entry · emergency stop · no AMM · no CEX · no personal wallet. The vote never decides "do anything" — only YES/NO inside safe rails.

RULES (proposed)
Normal
24 h vote · quorum ≥ 10% · approval ≥ 60% YES · weekly cap ≤ 1% of Safe gold · timelock 24 h · allowlisted destination
Emergency
6 h vote · quorum ≥ 20% · approval ≥ 90% YES · may move up to 100% but only to a verified emergency Safe · timelock 6 h · reason mandatory

The tokenized gold belongs to the protocol's reserve — no individual redemption right for holders/miners/buyers; not a peg; not gold-backed SOST; not a dividend/yield/equity; no new SOST minted; NOT ACTIVE. Full design: Gold Vault Signal design.

ARCHITECTURE

Two-Vault Architecture (DESIGN / PLANNED)

Source
Coinbase 25%
Consensus-enforced
every block
Operational
Funding Vault
SOST chain
accumulates & converts
Execution
TWAP Pipeline
Sell SOST → Buy
XAUT / PAXG
Destination
Reserve Vault
Ethereum mainnet
Heritage sealed

The Funding Vault needs operational flexibility (sell SOST, buy gold tokens). The Reserve Vault needs maximum immutability (Heritage sealed). Splitting them achieves both without mixing “hot” and “cold” functions.

FUNDING VAULT

Gold Funding Vault

Consensus-Enforced Allocation
CONSENSUS-CRITICAL

Hardcoded destination in genesis consensus rules. Receives exactly 25% of each block subsidy (q = reward // 4). Any block without the correct vault output is invalid. Accumulated SOST is periodically converted to tokenized gold exposure via the TWAP execution pipeline.

Allocation25% of every block reward // q = reward // 4
EnforcementConsensus validation // invalid block if missing
Year 1 accumulation103,160 SOST
30-year total1,167,300 SOST
Default split50/50 XAUt / PAXG // adjustable for future purchases
Staging assetsUSDC + USDT // ≤72 hours temporary only
EXECUTION POLICY

TWAP Batch Sales (DESIGN / NOT ACTIVE)

Rule-Based Conversion Pipeline
OPERATIONAL

TWAP (Time-Weighted Average Price) would execute a daily sell budget as many small, evenly spaced limit orders over time, so the realized price approximates the market’s average and minimizes impact. No discretionary “sell whenever we want” behavior. This describes the planned model; it is not active today.

// Daily sell budget (conservative) DailySell = min( VaultBalance × 0.25% , DailyVolume × 2% ) // Split into micro-orders clips = 48 per day // one every 30 minutes max_slippage = 0.5%–1.0% // per clip, cancel if exceeded // Anti-crash layer if price_drawdown > 8% (24h): reduce budget 50% OR pause 24h if spreads widen: sell less if price drops rapidly: throttle or pause
Clips per day48–96 micro-orders // every 15–30 min
Max slippage0.5%–1.0% per clip
Cooldown trigger−8% intraday drawdown // pause or halve
Purchase start≥8 months after public launch // + market readiness
Audit trailMandatory per-batch report // public, verifiable
HERITAGE RESERVE

Reserve Vault — Heritage

Heritage Sealed by Default
IMMUTABLE

The Reserve Vault is an Ethereum mainnet smart contract holding allowlisted precious-metal tokens (XAUt and PAXG). Default state is Heritage: sealed, perpetual, untouched while SOST exists. No outbound transfers in normal operation. “Decades of collective work — converted to gold exposure — preserved.”

LocationEthereum mainnet smart contract
Default stateHERITAGE — sealed, perpetual
Allowed assetsXAUt, PAXG // allowlisted precious-metal tokens
Outbound transfersNONE in normal operation
Movement authorityEmergency Catastrophe dual-gate only
EMERGENCY PROCEDURE

Emergency Catastrophe

Dual-Gate Authorization
CONSTITUTIONAL

Reserve movements require both gates to pass — neither alone is sufficient. This prevents unilateral protocol action and ensures miner consensus backs any reserve operation.

// Gate 1: PoW Miner Signaling (SOST chain) window = 144 blocks // ~24 hours at 600s/block threshold = 60% // qualified majority (3/5) required = ceil(0.60 × 144) = 87 blocks YES // Gate 2: Protocol Execution Order (Ethereum) signature = Protocol key ECDSA nonce = sequential // replay protection expiry = block.timestamp deadline // ONLY two permitted actions: E1: ROTATE → move to other allowlisted precious-metal tokens E2: LIQUIDATE → sell gold → buy SOST → BURN
E1: ROTATE
Move reserve holdings between allowlisted precious-metal tokens (e.g. XAUt ↔ PAXG). Issuer migration or risk response.
E2: LIQUIDATE→BUY→BURN
Sell gold tokens, acquire SOST on market, burn permanently. Existential reserve-safety event.
NETWORK LIFECYCLE

Heritage & Dissolution

Dead-Man Switch
OPERATIONAL

If the chain dies and no Emergency Catastrophe was authorized before blocks stopped, the reserve remains in Heritage state. The absence of consensus activity cannot authorize reserve movements. Heritage is the default — always.

Day 0Last block mined
Day 30 — WatchLiveness Alert · recovery begins // no liquidation
Day 60 — CriticalFull incident report // no liquidation
Day 90 — DissolutionPublic notice starts // 60-day window begins
Day 150 — ExecutionWind-down execution // network lifecycle shutdown
CONSTITUTION

Gold Reserve Rules

Constitutional Constraints (G-Rules)
IMMUTABLE AT GENESIS
G1Every valid block MUST pay Gold Vault exactly q = reward // 4
G2Two-vault separation: Funding (operational) + Reserve (cold)
G3Reserve Vault is Heritage sealed; no outbound in normal operation
G4Purchases begin ≥8 months after public launch + market readiness
G5TWAP batch execution only — no discretionary market-timing
G6Allowlisted assets only: XAUt, PAXG; USDC/USDT staging ≤72h
G7Default 50/50 split; adjustable for future purchases only
G8Issuer risk: redirect future purchases without consensus
G9Emergency dual-gate: ≥60% miner signaling + Protocol Execution Order
G10All vaults, batches, and proofs publicly published
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