Disclaimer: The information contained herein is subject to change.
Since our launch, people have been asking great questions about our protocol and how it works. This FAQ is meant to provide some more detailed answers, and we anticipate that additional information will be added. Please bring any additional questions to one our community channels.
1. What is the Auric Network?
The Auric Network is a protocol which builds on the strong economic legacy of the traditional gold markets and incorporates advancements in Distributed Ledger Technology (DLT) to present a currency with the characteristics idealized by economic agents past and present to create an economic system that is truly transparent, independent (decentralized), and adaptive.
2. What is AUSCM?
AUSCM has been engineered as a synthetic commodity currency to contract or expand in supply (Rebase, see “4. What is Rebasing?” for more information) dependent on where it is priced relative to the Reference Gold Price (price of 10mg gold as quoted from Oracle Index Price of gold from Chainlink). AUSCM has a goal price set between +/- 5% of this Reference Gold Price.
Unlike other synthetic commodity monies, with or without a rebase, an AUSCM’s value does depend on an intrinsically “bare” base currency (like the USD) or an illiquid asset class — it is based on gold, the currency of currencies.
3. Who created AUSCM? And how can we trust this isn’t a scam?
We (just like the creator(s) of Bitcoin and Grin) aimed to build an economy built not only on sound economic principles, free of political or commercial agendas, but one that is operated/maintained/governed in the same way. The Protocol is what the AURIC NETWORK is, not the people behind it- our identities are but distractions.
Anonymity, admittedly, does create the veil under which hidden agendas can be harboured; however, we hope that our true intentions for not disclosing our identities can be evidenced in the following “checks and balances”:
- Quantstamp Audit (due to be released soon)
- Open 10 Eth bounty for 2 additional audits
- No founder tokens
- 100% distributed supply
- No VC’s
- 300 ETH locked liquidity in Unicrypt
4. What is rebasing?
Rebasing is the mechanism through which Auric’s protocol implements elastic supply. In a traditional centralized economy the velocity and size of money flow is managed by the fiscal policy of a government or the monetary policy of that country’s central bank. AUSCM is a decentralized currency and therefore there are no central banks or government bodies to perform this function- nor any of their inefficiencies!!
The Auric Network “economy” is managed and fueled by the process of rebasing, which is just an expansion or contraction of token supply at a predetermined time and subsequently regular intervals (every 12 hours, over a period of 5.45 days for each rebase), based on where AUSCM is trading relative to the price of 1mg of gold. Thus in accordance with the economic principles of supply and demand, an “overvalued” market can be moderated, not arbitrarily but in line with an economic equilibrium determined by the price of gold, through an increase in supply (positive rebasing). The reverse is also true for an “undervalued” market- the supply of AUSCMs contracts (negative rebasing) to conform to a gold price determined equilibrium.
5. Why Rebase?
Other than the general strengths/benefits of a decentralized economy, the rebase process for AUSCMs also fuels and lubricates the mechanisms for the economy. Unlike a centralized system where the governing entity is incentivized in line with organizational or individual agendas, the Auric Network must be operated in a manner that preserves the system’s independence and “purity”.
A small portion of the Rebase (10%) will fund or “irrigate” a Secondary Rewards Pool to incentivize continued adoption of the protocol and use as a currency. How this Rewards Pool is distributed or otherwise functions has not been defined — the parameters must be defined by YOU, the stakeholders, using on-chain governance mechanisms.
This is the process through which the “value” of a currency can be established and, outside of DeFi, refers to the convergence of the price at which a buyer is willing to buy at with the price at which a seller is willing to sell at (the convergence of bid-offer). Whilst the traditional ‘bid-offer convergence’ is not how value is determined in Liquidity Pool based markets, the efficient establishment of value or the relative price of a currency remains crucial. The key to efficient ‘price discovery’ is to maximize liquidity or trade volume allowing for the quick establishment of a value consensus. Naturally when one holds their wealth in a currency it is desirable that value is not distorted by market inefficiency.
Rebasing, promotes buying and selling through profit making opportunities (arbitrage opportunities) presented as prices adjust.
6. Will I lose money because of a Rebase?
Rebasing is Auric’s way of maintaining the value of the AUSCM. Like any currency, AUSCM is subject to inflationary and deflationary forces — rebasing is AUSCM’s means of managing this. The price of AUSCMS will move and so will the relative value of your wealth stored in it, however it will not change solely based on the rebase. If anything, the rebase is one of the ways our system preserves the value of your stored wealth, insulating it from inflationary impacts.
7. What is Staking and how do you do it?
Staking is a process of pledging or locking up money to build a system of establishing a “consensus” in a decentralized system. To understand this better, consider common situation in traditional centralized finance:
Erica sent Josephine $10 through an internet banking transaction. “Consensus” of this transaction, that is a consensus that money was sent by Erica and received by Josephine, is established by the bank.
In DeFi, by definition there is no bank to achieve this consensus or verification — “transactional confidence” has to be acquired through validation by others in the decentralized economy and not from a single authority or entity. In this light, staking refers to the pledging or locking up money to fuel the validation system. The more one stakes the more likely one is chosen as the “validator” of the transaction and thus rewarded for their effort. This means of validation and compensation for the transactional validation facilitates an environment of trust and thus sustains the system.
AUSCM is no different in this sense as it requires participants to “stake.” Click here to learn how to stake and be rewarded for supporting the system!
8. Can I farm AUSCMs?
Farming on the AURIC Network will take the form of staking pools. We start with an initial supply of 30 million tokens, 56% of which is used to reward farmers via our initial staking rewards pool. Another 44% of the supply will be available for sale to the general public at around the same time of launch where we will be staking the currency into a UNISWAP V2 liquidity pool. We have locked our LP token liquidity via Unicrypt for 6 months. This is meant to show the community that we are fully committed to the future growth of the project.
9 . What are the rewards?
Initial staking rewards of AURIC’s native token AUSCMs will be distributed across 21 staking pools for 14 days. Rewards will be distributed evenly across 20 pools (15 LP, and 5 base currency) and with 3x the rewards for the AUSCM/ETH UNI V2 LP pool.
Out of all rewards given to miners (farmers), 20% of those rewards will be evenly distributed into separate pools:
- Auric DAO fund run through community governance, dedicated to investing into the further implementation, adoption, and development of the protocol.
- A Governance Rewards Pool, a community governed pool for rewarding those who participate in community governance including, but not limited to, voting, proposals, etc.
- Secondary Rewards Pool to incentivize the users to continue providing liquidity (an early exit means missing out on additional rewards)
- Developers Pool for future audits, additional development, and creativity.
10. I like the story, how do I get started?
Please do your due diligence and read the details about our protocol. And, visit us at https://auric.network. There are some tutorials there that you may find useful.
About Auric Network
Auric Network (AUSCM) is a synthetic commodity money that is not dependent on the current world-based currency as the goal price or value. Instead, Auric relies on the centuries-old currency of all currencies, or store-of-value: gold.
AUSCM is not an investment product. It is not intended in its design or distribution to be utilized as a form of investment, speculation, or a financial product. No communications from Auric Network Limited to users constitute financial advice, a solicitation for investment, or a guarantee of a financial return. Please do your own research and investigation before participating in this project.