DG is the gold foundation of the Midas protocol. Each token is backed by audited physical gold held in secure third-party custody in Dubai and is redeemable for it at any time. Unlike holding gold outright, DG is deflationary: a portion of every DG and D-Token transaction fee burns circulating DG supply, so each token's gold backing grows automatically.
DG is minted against confirmed, audited gold. Its backing ratio grows over time through supply burns triggered by protocol activity.
DG can be minted directly against physical gold, or purchased on secondary markets. The minting process is gated by confirmed gold custody at every step.
DG is also tradeable on secondary markets. Arbitrage between the secondary market price and the minting rate tends to keep the two near parity. Every secondary market trade also incurs a fee that burns DG supply, so the backing ratio improves with every transaction regardless of whether it's a mint or a trade.
DG is only as strong as the gold behind it. Every detail of custody, auditing, and insurance is designed to ensure the backing is real and verifiable at all times.
| Property | Detail |
|---|---|
| Custodian | Independent third-party institution, Dubai |
| Audit frequency | Monthly independent audits |
| Verifiability | All audit reports publicly accessible |
| Insurance | Fully insured holdings |
| Minting gate | No DG is minted without confirmed, audited gold on record |
| Pre-audited reserves | Accepted immediately for DG minting and D-Token EOL reserve allocation, without waiting for a new audit cycle |
| Redemption | DG redeemable for physical gold at any time, proportional to current treasury backing |
DG is not just a standalone gold token. It is the reserve asset the entire Midas protocol depends on. Every D-Token's end of life contingency is held in DG which means DG's appreciation benefits the whole stack.
Every D-Token fee splits four ways: a portion burns D-Token supply, a portion grows that D-Token's isolated DG reserve, a portion burns DG circulating supply, and the remainder goes to protocol revenue. The DG burn happens on every trade across every D-Token. The more protocol activity, the more DG circulating supply shrinks, making every EOL gold reserve in the protocol stronger.