What is the LODE Token?
The LODE Token is a virtual stake holding in the LODE Ecosystem. When you acquire LODE Tokens, you are investing in the LODE Project and you have rights and obligations to the LODE Monetary System.
How Does the LODE Token Work?
The LODE Token is a speculative Token that acts like an equity position in the LODE Ecosystem offering holders the benefit of the potential re-valuation of the LODE Token according to the valuation metric or bonded curve. LODE Token holders are also entitled to a variable dividend payment (referred to as a Micro-payout) in the form of AGX Digital Coins .
The AGX Micro-payouts are delivered 7 times per year (or every 52 days) directly to the LODE Token holder’s mobile wallet based on the number of Lode Tokens held by the account holder as a percentage of the total number of LODE tokens issued .
The size of the rewards is based on the net profits generated by the various income streams of the LODE Monetary System. Additional income streams will be added along as the project expands.
To be able to acquire LODE Tokens, a secure KYC (Know Your Customer) registration process needs to be completed as well as agreeing to the Lode Token Investment Contract.
Once a qualified member, anyone can acquire LODE Tokens and pay for them with a Credit Card, Crypto, or by contributing investment-grade Silver bullion (or Gold equivalent) to the LODE Vaults.
When the Silver or Gold bullion enters the vault, it is certified as 99.9% pure, properly accounted for, vaulted, insured and then Tokenized, and recorded on the Lode account dashboard of the contributing member.
The LODE Token exchange rate will also rise within each of these phases over time as the community grows. (See bonded curve issuance model below)
LODE Tokens are delivered to the contributor’s LODE Token Account, leaving a verifiable and immutable receipt via the blockchain.
Who is Eligible to Participate?
To be eligible to participate in the LODE Community, you must be at least 18 years old and reside in a country in which LODE is available. Please note that LODE is not available in every country or may be restricted in certain jurisdictions.
BANNED COUNTRIES LIST:
(Banned countries are those that have been sanctioned, or experiencing economic instability or wars)
Afghanistan, Bosnia and Herzegovina, Burundi, Centro African Republic.Congo, Cuba, Cyprus, Egypt, Eritrea, Ethiopia, Guinea, Guinea-Bissau, Iran, Iraq, Jordan, Kenya, Laos, Lebanon, Libya, Myanmar, Nigeria, North Korea, Pakistan, Palau, Qatar, Somalia, South Sudan, Sri Lanka, Sudan, Syrian Arab Republic, Tunisia, Uganda, Ukraine, U.S. Virgin Islands, Vanuatu, Venezuela, Yemen, Zambia, Zimbabwe.
Any transactions to or from these countries should be blocked due to the sanctions regime. These countries are already blocked via Sum and Substance ensuring LODE does not onboard any clients from these locations.
RESTRICTED COUNTRIES LIST:
(Citizens of restricted countries may make an application for membership to the Lode Project, which will be reviewed for approval on a “case by case” basis.)
Albania.Algeria.American Samoa.Angola.Antigua and Barbuda.Armenia.Azerbaijan.
Bahamas.Barbados.Belarus.Belize.Benin.Bolivia.Botswana.Brazil. British Virgin Islands.Cambodia.Cape Verde.Cayman Islands, China, Colombia, Comoros, Curaçao,
Dominican Republic, Ecuador, El Salvador, Fiji, Ghana, Guam, Guatemala, Haiti, Honduras.
Iceland, India, Jamaica, Kazakhstan, Kyrgyzstan, Lao People’s Democratic Republic, Liberia, Mali, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Nicaragua, Panama, Paraguay, Philippines, Puerto Rico, Russian Federation, Samoa, Saudi Arabia, Serbia, Seychelles, Sierra Leone, St. Kitts and Nevis, St Lucia, St Maarten, St Vincent and the Grenadines, Tajikistan, Tanzania, Thailand, Trinidad & Tobago, Turke, Turkmenistan, Uzbekistan, Vietnam, West Bank(Palestine Territory), Western Sahara.
What is The Minimum Investment-Grade Silver and Gold Bullion That Can be Contributed?
The minimum delivery weight of investment-grade Silver bullion required to become a LODE Token Holder is 3110 grams, or one-hundred (100) troy ounces. The minimum delivery weight of investment-grade Gold bullion required to become a LODE Token Holder is two (2) troy ounces.
Where are The Silver Contributions Held and Secured?
All Silver Bullion contributions to the LODE Project are held and secured through LODE’s vaulting partners in the Bullion Dealer Alliance (“BDA”). Currently, the silver is stored in 6 Vaults worldwide, located in : Canada, USA, Frankfurt, Germany, Liechtenstein, Singapore, Cayman Islands
If I Choose to Place a “Buy” Order What Are My Payment Options?
Bank wire transfer or ACH (Automated Clearing House – US residents)
Credit Card for 100-ounce orders ONLY! (A 5% surcharge is applicable)
Bitcoin – for orders of any size. (A 1% surcharge is applicable)
Other cryptos (i.e. BCH, ETH, EOS, LTC, XRP, XLM and others) for orders over $100,000 USD (A 1% surcharge is applicable).
Here are three ways to invest in the LODE System:
1) You can deliver some of your own investment-grade Silver (AG) or Gold (AU) Bullion that you have been buying and stacking over time, thus putting your metal to work for you. You simply go into your desktop LODE Members Portal dashboard and click on the “Buy LODE” heading in the left column.
Here you will have an opportunity to contribute Silver and/or Gold. Fill in your quantity and complete your order.
Once you have placed your “Deliver” order, you will receive an email with complete instructions from packing to prepaid shipping and insurance, depending on the country of origin. Once we receive your shipment, and audit it, you then receive one LODE Token, or fractions thereof, for every 6.5 grams (current rate) that you shipped. (This process can take up to 14 business days to complete.)
2) If you have no physical Silver of your own to ship, you can purchase Silver from LODE through your Members Portal dashboard (via the LODE Bullion Dealer) to deliver to the LODE Project.
The sale of Silver is done through our vaulting partner, International Gold Vault. Your final order will be for a specific number of ounces with an initial minimum of 100 oz. The actual price may vary depending on the price of silver at the time of payment.
You pay for the purchase, then LODE procures the metal from our bullion partner on your behalf, vaults it and then LODE issues LODE Tokens to your LODE Member account. (Again, this process can take up to 14 business days to complete)
3) You can also choose purchase smaller amounts of LODE Tokens (less than 100 ounces) using your credit card to purchase a “Silver Card” for any amount using LODE’s “Silver Card” program, and “redeem” the Silver Card ePin number to receive your LODE Tokens. (A credit card convenience fee will be applied at the time of purchase as well.)
How Long Does it Take for My Silver Bullion Order to be Delivered to The Vault?
Shipments can take anywhere from ten days to two weeks to reach the nearest vault affiliate facility, depending on where your contribution is being shipped from, and to which vault facility your contribution is being shipped to. Shipments can be tracked in real-time on the FedEx or Loomis websites.
Can I Make Additional or Multiple Contributions to The LODE Project?
Yes, you can always add additional contributions to your LODE account at any time by placing either a “Buy” or “Deliver” order through your online LODE account.
When Do I Receive a Confirmation of My Contribution From BDA?
Once your contribution has been deposited into the vault, you will receive confirmation by way of an email from the BDA.
When Do I Receive a Confirmation of My Order in My Online LODE Account?
You will typically receive confirmation of your contribution to your LODE account from LODE within 5 business days after you receive your confirmation from the Bullion Dealer Alliance (BDA).
Can I Change My Contribution Method From a “Buy” Order to a “Deliver” Order or Vice Versa?
Yes, you can change your contribution method by contacting LODE at firstname.lastname@example.org to request the change. Please be sure to include your name and six-digit LODE ID number with your written request. You will then receive an email confirmation of your change detailing any new instructions on how to complete your “Buy” or “Deliver” contribution to the vault.
How Do I Calculate the Number of LODE Tokens I Will Receive for My Contribution?
To calculate the number of LODE Tokens you will receive for your contribution, simply divide the number of grams you contributed by the designated gram exchange rate for the Phase in which you contributed. There are 31.1 grams in one Troy ounce.
LT = Silver grams contributed / prevailing LODE Rate found in your Desktop Member Portal
Please sign in to your desktop member portal via Lode.one. On your dashboard page, you will see the “Buy Lode” header on the left side. Click on that and you will be directed to a page where you can choose how to buy LODE Tokens.
Once you have made your choice, you will be redirected to a page requiring the quantity of LODE Tokens that you wish to purchase. It is here that you will find the current Token Rate.
For example, if you contributed 100 ozs (3110 grams), divide 3110 by 6.50 (the current exchange rate as of this date) for a total of 478.46 LODE Tokens.
LODE Token Holders will be paid a share of the net profits generated based on the number of Lode Tokens each member holds against the total number of Lode Tokens held by all members combined. No other stakeholders or third parties will receive any portion of the profits.
Returns are based on net profits generated across ALL of LODE’s business income streams, including all corporate interests, AGX, AUX sales and any additional products or platforms launched.
Payouts are made every 52 days, according to the countdown clock in your members portal.
The payout is based on 15.77% of the net spread between the AUX & AGX Digital Coin selling price and the spot price of Gold & Silver at the time of sale; additional revenue streams are being added as the LODE System expands.
All micro-payouts will be in the form of AGX Digital Coins deposited directly into the member’s LODEpay mobile wallet.
How do I qualify for AGX Micro-Payouts?
There are four requirements to complete by members to qualify for AGX Micro Payouts:
Agree to the Lode Token Investment Contract. This can be found by first clicking on the profile icon or the head and shoulders avatar in the top right area of your Lode account dashboard. Then click on “Profile Settings” and scroll down to the bottom of the page where you can scroll through and read the LODE Token Investment contract, and once the “I agree” button highlights, you can then “sign” the contact. (You will also find the AGX Terms of Service Agreement there as well which you can read and then “agree” to).
Complete your KYC (See “How to complete KYC”)
Buy at least one Lode Token and have it “confirmed” on your Lode account dashboard as “Lode on Hyperledger" (This manual transfer can take 5- 7 business days) Note: Lode tokens must always remain on the Hyperledger to qualify for micro-payouts.
Enter your Public Key Address in your members portal to allow the system to send you your micro-payouts and affiliate rewards to your AGX Wallet. To do this, you must download and set up your LODEpay mobile wallet, “link” your Lode account to your mobile wallet, and enter your Public Key Address into the Public Key Submission box found on the Profile settings page of your Lode account. (Follow this instructions link)
Why do LODE Tokens Require KYC?
LODE Tokens can be purchased through your Member’s Desktop Portal dashboard and are considered a form of Security. As it is considered a Security Token, in order for us to be compliant, Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations become a part of purchasing LODE Tokens. Virtually all securities exchanges today are regulated to require KYC / AML from their customers.
The KYC components include some personal information in the form of
1) Proof of ID, including either a photo of the center pages of your Passport (preferred as your ID if you have one), or Driver’s License (front and back).
2) a photo of a current Utility Bill ( gas or electric), a bank statement or internet/cable TV billing, with your current address, and having an issue date of less than 3 months. (You can use your driver’s license here as well if you used your passport in Part 1)
3) And a Liveness confirmation (“selfie” photo) via phone or web camera.
How to complete your KYC (link)
How do LODE Token Holders Receive AGX Micro-Payouts?
Once you have successfully completed the four requirements, and all four boxes on your Lode account dashboard each have a check-mark displaying, you are now qualified to receive AGX Micro-Payouts.
LODE Tokens have to be in the Hyperledger for 77 days to become eligible to receive micro-rewards. This is done to reduce the pump and dump actors in the LODE Ecosystem.
In addition, LODE Tokens MUST always remain on the Hyperledger blockchain to qualify and receive AGX micro-payouts. AGX Micro-payouts are paid out progressively 7 times a year (or every 52 days) into the mobile wallets of Lode Token holders.
How Can I Sell My LODE Tokens?
LODE Tokens are a form of equity investment and at this time, can only be liquidated through private sales to another “qualified” Lode member. Any form of payment may be negotiated and accepted through private agreement. The buyer and seller are responsible for the transfer of whatever form of payment they agree to.
Once the buyer and seller have negotiated an agreement, they each send an email to the LODE Vault Master, with the names and Lode ID#’s of both parties, and the details of the agreement, including the purchase price, advising LODE of their pending transaction. The Vault Master will then confirm the seller does indeed possess the Lode Tokens and will then put said Tokens into an Escrow account.
Once the transaction payment is confirmed by the seller as completed, the buyer and seller shall both advise the Vault Master, who will then transfer the LODE Tokens from the seller’s account to the buyer’s account.
Join the LODE Official Telegram Channel to post your intention to sell LODE Tokens when required.
How Are My LODE Tokens Stored and Secured?
LODE Tokens are currently held in a secure Hyperledger provided by a qualified 3rd party service provider, Hyperledger is a permissioned blockchain platform.
Use Cases for LODE Tokens
Silver Stackers (Individuals)
LODE Tokens provide an opportunity for individuals to put a portion of their idle Silver grams to work on the blockchain, track them and not only receive micro-payouts, but also participate in the potential rise in value of the LODE Token. See valuation Report (link)
A LODE Token can be considered a speculative asset that has a unique relationship to Silver. Crypto traders can purchase a LODE Token if they wish to speculate on a blockchain enabled Silver money system. Crypto traders and/or fund managers of cryptocurrency and blockchain assets can position LODE Tokens as a means to diversify portfolios. LODE Tokens can be acquired with any major crypto currency.
Bullion Dealers can encourage their customer base to acquire LODE Tokens. Their customers can then benefit from a potential increase in the market value of the LODE Token as a result of the increasing net profits generated through the global expansion of the Lode ecosystem.
Public and private Silver mining companies may deliver and exchange their idle Silver into the LODE System. The Silver can then be tokenized and the LODE Association can sell AGX to industrial companies, suppliers/merchants, vendors and any other number of groups or Silver enthusiasts, thus saving on storage and insurance costs, and creating portability of their digital silver assets.
Stock / Paper Investors
LODE Token assets may present an additional opportunity for Silver investors that have experience trading in ETFs, Silver stocks and the Paper Silver market. LODE Token positions provide a new asset class that can offer a platform for further diversification, such as new types of security instruments and lower administrative costs for trading, exchanging and transacting with Silver. LODE Tokens also provide holders with another avenue of returns with AGX Micro-payouts and the potential rise in value of the LODE Token.
Bullion investors may acquire LODE Tokens in exchange for some of their investment-grade physical Silver and/or Gold coins and bars. LODE Tokens provide holders with another avenue of returns with AGX Micro-payouts and the potential rise in value of the LODE Token.