25% of every block reward flows to the Metals Funding Vault by consensus. Accumulated SOST is converted to tokenized gold exposure (XAUT/PAXG) through an auditable execution pipeline. Purchased reserves are deposited into a Heritage Vault on Ethereum mainnet — sealed by default, perpetual.
Operational liquidity is separated from permanent reserve storage. The Funding Vault needs flexibility to sell SOST and buy gold. The Reserve Vault needs maximum immutability.
Block reward mined
→25% accumulates (SOST chain)
→Sell SOST, buy XAUT/PAXG
→Heritage sealed (Ethereum)
Hardcoded coinbase destination. Receives exactly 25% of each block subsidy by consensus (q = reward // 4). Any block without the correct vault output is invalid. Accumulates SOST for periodic conversion.
Holds allowlisted precious-metal tokens (XAUt and PAXG). Sealed by default — no outbound transfers in normal operation. Reserve assets are intended to remain perpetual and untouched while SOST exists.
| Rule | Provision |
|---|---|
| G1 | Every valid block MUST pay the Funding Vault exactly q = reward // 4. Otherwise invalid. |
| G2 | Two-vault separation: Funding Vault is operational; Reserve Vault is cold storage. |
| G3 | Reserve Vault deployed on Ethereum mainnet. Heritage sealed by default. |
| G4 | Purchases begin no earlier than 6 months after genesis, only once market readiness is met. |
| G5 | Purchases executed in batches following rule-based TWAP policy, not discretionary timing. |
| G6 | Reserve limited to allowlisted tokens (XAUt/PAXG). USDC/USDT only as staging (≤72h). |
| G7 | Default 50/50 XAUt/PAXG. Adjustable for future purchases only, disclosed in batch reports. |
| G8 | Foundation may redirect future purchases from threatened issuer without consensus. |
| G9 | Emergency Catastrophe dual gate: ≥75% miner signaling + Foundation Execution Order. |
| G10 | Both vault addresses, all batch reports, and all transaction proofs MUST be publicly published. |
No cross-chain bridge. No wrapped SOST. Automation is achieved through a deterministic execution stack with public attestations at every stage.
| Stage | Role | Detail |
|---|---|---|
| Watcher | Monitor | Monitors Funding Vault balance, detects batch threshold |
| Batcher | Order | Creates signed execution order when threshold is met |
| Executor | Trade | Sells SOST in TWAP clips, purchases XAUT/PAXG, deposits to Reserve Vault |
| Attestor | Audit | Publishes public batch record with full transaction proofs |
Convert Funding Vault SOST into XAUT/PAXG with minimal market impact, maximum traceability, and rule-based execution.
| Parameter | Value |
|---|---|
| Max daily volume | 2% of exchange daily volume |
| Clips per day | 48-96 micro-orders |
| Max slippage per clip | 0.5%-1.0% |
| Crash throttle | Reduce or pause on >8% drawdown |
| Order type | Limit orders (no blind market selling) |
| Field | Description |
|---|---|
| Execution window | Day/time range of batch |
| SOST sold | Total amount and number of clips |
| Venue(s) | Exchange or OTC counterparties used |
| Realized TWAP/VWAP | Average execution price and total slippage |
| Purchase proof | XAUT/PAXG acquisition records |
| Deposit hash | Transaction hash proving deposit into Reserve Vault |
| Token | Issuer | Backing |
|---|---|---|
| XAUt | Tether Gold | Physical gold, London Good Delivery bars |
| PAXG | Paxos Gold | Physical gold, London Good Delivery bars |
Staging assets: USDC and USDT may be used strictly as temporary staging during execution (≤72 hours). They are not reserve assets. Expanding to other metals (silver, platinum, palladium, rhodium, iridium) is a roadmap item, not a promise.
| Period | SOST Accumulated | Note |
|---|---|---|
| Year 1 | 103,160 SOST | Annual intake from coinbase |
| Epoch 0 (years 0-2.5) | 258,210 SOST | First epoch total |
| 30 years (~12 epochs) | 1,167,300 SOST | ~95% of lifetime allocation |
| Lifetime total | ~1,167,300 SOST | 25% of max supply |
| Layer | Trust Level | Mechanism |
|---|---|---|
| Coinbase allocation | Trustless | Consensus-enforced (hardcoded validation rules) |
| SOST→gold conversion | Auditable | Foundation-executed, public batch records |
| Reserve Vault custody | Verifiable | Ethereum mainnet, public addresses |
| Reserve movement | Dual gate only | ≥75% miner signal + Foundation order |
| Cross-chain bridge | None required | No bridge, no wSOST, no smart contract dependency |