How Bitz Works
A gold-backed, deflationary global monetary system with a capped supply of 100,000,000 coins.
Three Core Pillars
Gold-Backed
Each Bitz Coin is backed by a portion of a gold reserve, providing stable intrinsic value that protects against volatility typical of both fiat currencies and cryptocurrencies.
Deflationary
The 0.2% transaction burn rate permanently removes coins from circulation, creating controlled scarcity that enhances value over time while maintaining usability.
Capped Supply
100,000,000 total supply cap means no more coins can ever be created. Combined with burns, supply only decreases – the opposite of inflation.
The Gold-Backing Process
How each token is linked to physical gold through a transparent, auditable on-chain process.
Step 1: Acquire Gold
For each kilogram of gold acquired, a unique identifier (GoldBatchID) is assigned from the custodian's documentation – vault receipt or serial number for each 1 kg bar.
Step 2: On-Chain Mapping
A smart contract records the relationship between each pre-minted Bitz Coin and the unique GoldBatchID. Example: tokenID 1 → GoldBatchID12345.
Step 3: Proof of Reserves
A cryptographic hash or signed document from the custodian is stored on-chain, verifying the existence and storage of each gold bar.
Step 4: DApp Verification
The interface displays each token's gold backing details. Users can verify the GoldBatchID linked to their specific Bitz Coin.
Step 5: Optional Redemption
Token holders can redeem for physical gold. Upon redemption, the token is burned, maintaining the gold-to-token ratio.
Step 6: Regular Audits
An oracle verifies reserves periodically. Third-party audits validate that gold remains in custody for each GoldBatchID.
On-Chain Verification
// Smart Contract Mapping
mapping(uint256 => string) public tokenToGoldBatchID;
function attachGoldToToken(
uint256 tokenId,
string memory goldBatchID
) external onlyOwner {
tokenToGoldBatchID[tokenId] = goldBatchID;
}Each token ID maps to a specific gold bar via GoldBatchID
Frequently Asked Questions
Why Gold-Backed?
Gold has been humanity's most trusted store of value for thousands of years. By backing each Bitz Coin with physical gold, we combine the timeless reliability of gold with the speed and accessibility of digital currency.
How Does the Burn Mechanism Work?
Every time a Bitz Coin transaction occurs, 0.2% of the transaction amount is permanently destroyed ("burned"). This means the total supply continuously decreases, making each remaining coin more scarce and potentially more valuable.
Why a Capped Supply of 100 Million?
A fixed supply ensures no more can ever be created. Combined with the burn mechanism, this creates a truly deflationary currency where supply only goes down, never up.
How Is the Gold Verified?
Each Bitz Coin is linked to a specific kilogram of gold via a unique GoldBatchID recorded on the blockchain. Regular third-party audits and oracle verification ensure the physical gold remains in custody.
Can I Redeem for Physical Gold?
Yes. The system includes an optional redemption mechanism. Upon redemption, the token is burned, maintaining the integrity of the gold-to-token ratio.