No one likes fees, we understand that. Still, we were quite surprised by the push-back and the reluctance we’ve experienced from the community regarding the cost side of things. It’s obviously not an easy task to place a product subject to fees into a fee-free environment. But here’s our explanation.
The Tiberius Coin grants direct ownership of metal and the most important feature of this kind of token which acts as an ownership identifier of the “asset” which is held in the custody of Tiberius. These assets need to be bought first. In simple terms, the token price is backed by literal value, meaning that they don’t start at zero value like other digital assets, but rather, should be worth, at a minimum, the intrinsic value of the assets that they are backed by. There are other things to take into account like the combination of the assets value, accessibility, transferability, and other factors as well. But at the core of it all, asset-backed tokens have legitimate value, unlike others.
Every dollar we receive is immediately used to purchase metals which are identified by our token. This makes our token the electronic equivalent of metal. Every time a new Tiberius Coin is minted, new metal is purchased alongside it. If metal needs to be delivered, we burn that specific token and resolve the contract through the blockchain. Keep in mind, our token grants ownership over a basket of metals. The moment the metal leaves the warehouse, we need to make sure that the coin is purged. The token supply is thus continually adjusted to correspond to the amount of metal held in the custody of Tiberius.
If we want to protect our investors and provide them with an intrinsic value, if we need to ensure the price of the coin and the price of the underpinning metal moves in synch, someone needs to manage this in the background. Tiberius Coin holders don’t see this and they shouldn’t have to. All they should worry about is having the ability to use their tokens as a means of payment, a store of wealth, to diversify their portfolio, as a pure investment, or to trade physical metals without involving third-parties like banks and other clearing agencies.
And while this may seem like a sensible solution, there’s quite a lot that needs to be done in the background to guarantee that the coin maintains these attributes. This leads to the following cost structure:
