Creating Dignity digital assets is a synergy of blockchain technology and hard asset values.
All Dignity Advanced Digital Security Tokens (ADST) use advanced blockchain technology and verified live contract code. Utilizing the Ethereum blockchain, Dignity tokens use advanced features to enable functions that are not available with most other digital / crypto assets.
The features Dignity implemented allows for several unique abilities.
Having these abilities available is an added peace of mind that is not available with other digital assets or cryptocurrencies like Bitcoin or Ethereum. These abilities help ensure a safe, more secure, and regulatory-accepted approach to digital assets.
The value of Dignity Advanced Digital Security Tokens (ADST) is derived from its connection to hard assets in the form of mineral deposits with a unique system of agreements and contract provisions.
Dignity’s agreements with partner United States mining partners provide our tokens with a “minimum provision”. The provision locks in a minimum dollar amount. The dollar amount is divided by the spot price per ounce of the precious metal at the time of the agreement setting the minimum number of ounces.
If the price of the assets backing the currency increases, the dollar backing amount will rise concurrently as the number of minimum ounces is set. If the market price of the precious metal assets decreases, additional ounces of gold will be pledged to Dignity equalizing to the minimum dollar amount set at the time that the agreements were executed. This mechanism allows possible upside appreciation for the token while eliminating a reduction in the amount of precious metal backing the token.
An example of the “minimum provision” supporting the DIGau token is provided as follows:
DIGau is supported by a minimum of $6 billion of the gold reserves pledged to Dignity Corp.’s parent company, Dignity Gold, under deeds of trust and a pledge and security agreement. As of March 26, 2021, this was represented by 3,442,144 ounces of gold reserve or, $6 billion dollars divided by the market price of gold on the day of the agreement.
As of September 7th, 2021 the price of gold increased, the dollar backing amount rose concurrently. The value of the pledged gold was $6.290 Billion or an increase of $290 million in a little over five months. If on the other hand, gold dropped to $1600 per ounce, the pledged ounces of gold would increase to 3,750,000 ounces, an increase of 307,856 ounces, thus maintaining the $6 billion lower limit of the pledged asset value.
Dignity also has “forward purchase” agreements. These agreements give Dignity the right to purchase mined gold at fifteen percent (15% ) below the spot market on any date of purchase.
When combined with the acquisition of physical metal under forward purchase agreements, the anticipated inclusion of additional reserve assets and other investments should provide value and growth opportunities for Dignity digital currencies.
The combination of advanced technology, a unique system of agreements, and provisions with United States partners should create an intrinsic safe upside that is unavailable with most digital currencies.
Digital or cryptocurrencies are a very high-risk investment, creating real intrinsic value is impossible because a digital anything by its definition isn’t real.
A bank account is digital, a stock account is digital, and a Bitcoin is digital. The only fact that makes them different is the certainty that one can convert the digital to something tangible.
Financial marketplaces have overcome this concern using a system of promises, suppositions, and most importantly government regulatory oversite. When distilled down to reality, these marketplaces for the most part create intrinsic value through the illusion of a promise with a large amount of regulatory oversite.
Oversite ensures the information presented to the public is honest and transparent in its presentation, but that is still not a guarantee. When stocks of public companies fail, the perceived intrinsic value is quickly and unceremoniously turned to zero. The illusion of liquidation value and all the things that go with the promise vaporize.
Digital assets are either completely autonomous like Bitcoin and controlled by what people are willing to pay, or they are backed by a company with an idea. For the latter, the currency is only as good as the organization behind it, the underlying concept the currency represents, and regulatory oversite.
Dignity digital assets are different; they are based on hard assets in the form of mineral deposits and a unique system of verified agreements and contract provisions along with government oversite.
Dignity bridges the gap between standard crypto / digital assets and traditional financial instruments by following the same standards required by all publicly traded companies. This is perhaps the most important contribution to the ultimate success of Dignity digital currencies.