Achieving verifiable authenticity and transparency of underlying assets
Containerizing the TDN asset reserve backstop
(7 min read)
The TODA Note (‘TDN’) Program initial architecture was drafted on 1 July, 2017 Canada Day on the shores of the Trent Lakes in Ontario, with the exact view at that moment captured in the photo above. Readers of this article are being asked to accept the truth of the photo above. However, if the TODA-ADOT asset containerization software had already been developed in 2017 they would be able to directly verify many of the claims around that statement by directly inspecting the containerized photo.
The idea of TDN was around well before 2017 and actually first appeared in 2016 with the first discovery of the TODA Protocol. During this initial year TDN had been an embedded part of the TODA Protocol’s design as an integral settlement token or ‘gas’ during consensus, but the TODA Protocol’s efficiency and data structure enforced consensus led to its removal in that capacity. For more into the TDN history and plan, please see HERE.
The TODA Note (TDN) is a 2^37 supply of a decentralised, commodity backstopped stable digital cash built on the TODA and ADOT Protocols, and is designed to offer global, long-term, stable, and real economy utility and be the native payment means for the ADOT World Wide Web. It is meant particularly to support the trade and barter needs of general society, businesses, and the financially excluded populations of the world. A few of the underlying qualities that were designed into it were expressly meant to counteract many of the concerns today including excessive money printing, speculation, lack of underlying tangible value, and demonetisation and de-banking risks.
Combining physical cash benefits & digital speed: today’s digital currencies lack cash-like benefits, but with containerization it doesn’t have to be that way.
The right to own and the right to transact: The unfolding Gamestop market story highlights the need for democratization of free markets and providing a level playing field for all buyers and sellers.
Verified authenticity of underlying assets: The complexity of today’s markets and digital systems make it costly verify the assets underlying currencies, stocks, debt and other instruments.
TDN is not like any form of electronic currency or money that exists today, conventional, blockchain or otherwise. TODA and ADOT replicate the physical world and TDN is containerized digital cash with unique bills, that behaves like physical cash, but with digital speed and remote transaction benefits. It’s designed purely to hold value and for long-term usefulness.
The set value of the underlying reserve backstop behind each TDN (not a backing and not a peg) would be set initially at a minimum level of one cent and increased over time as the size of the reserve grows, depending on the value of the reserve and the amount of deployed TDN. These adjustments would be controlled and declared by the Foundation. The value of TDN is based on the combination of the underlying containerized reserve and the TDN utility value. Usually for underlying assets, direct verification and inspection is out of the hands of the normal consumer or retail owner, and the custodian and third party auditors have to be relied on. This is a gap that we wish to solve with the TDN reserve backstop.
The intent with the TDN program is to put it under a non-profit foundation in 2021 which would oversee minting and distribution of TDN as well as management of the underlying reserve backstop.
The backstop will be a basket of useful battery and digital economy commodities combined with land and some SDR currencies like USD. The foundation would report on minted TDN, deployed TDN and the underlying containerized reserve backstop assets through publicly accessible rooms in the ADOT Web which would allow anyone to directly verify details P2P.
The first commodity that will be put in the backstop, through a TDN for graphite deal with Gratomic Inc, is battery grade graphite. Gratomic Inc. is a Canadian resource company offering to bring environmentally-friendly, high grade vein graphite to the Global electric vehicle market. Their Aukam Graphite mine is reaching production in Q1 2021, they are planning to institutionalise graphite through digital currency and metals exchanges, and conduct continued R&D of value-added graphene manufacturing opportunities.
Gratomic will supply TODAQ with battery grade Aukam graphite in a USD $25 million contract (payable in TDN) for the asset reserve backstop. TODAQ USA, the native solutions provider of TODAQ, will be putting in place containerized graphite tracking & tracing from mine to market as the first step of ensuring that verified authenticity is possible.
A simple example view of the first containerized atomic swap transaction of TDN for graphite on the ADOT Web would look something like this.
The transacting parties meet in an ADOT Web trade room, removing the need for technical integration of ERP, supply chain or payment systems and minimizing requirement for brokers.
Gratomic puts the containerized graphite into an outgoing ADOT transaction container 1 which is paired with an incoming ADOT container 2 on which Gratomic specifies the requested TDN payment amount
TODAQ verifies the contents of the the offered container 1 and puts the requested TDN into container 2 when it is satisfied
The containers execute an atomic swap transaction on the TODA Protocol, using the TODAQ TODA-As-A-Service (‘TaaS’) Ring API for this first transaction. (TODAQ is also planning to release a multi Ring capability this year and part of the path to decentralisation, which means future transactions would not need to solely rely on TaaS). Each side is guaranteed simultaneous 100% settlement. Transaction confirmation takes a second and final deterministic settlement of ownership transfer is completed within a minute.
The graphite asset containers now register the backstop reserve as their owner and each TDN bill now registers Gratomic as its owner.
If either party shows these assets to anyone else the integrity of the graphite or TDN can be immediately verified and once settlement is complete
Once the containerized graphite is held by the STAR Foundation in its reserve, there are many guarantees around the graphite that would be relevant to a holder of TDN to inspect and verify:
that the company sourcing the commodity is properly incorporated, with the right licenses and permits to carry out operations
that the graphite is of the required quality and specifications, supported by the results of internal and external testing reports
That the graphite was cleanly and ethically mined and there are verifiable metrics to measure chemical or carbon footprint
That the transaction of TDN for commodity was properly purchased with all required documentation and agreements
That the containerised graphite now owned by the backstop reserve is properly stored in secure custody, and any ongoing inspections and audits can also be verified P2P as part of the overall graphite asset.
Each 2 tonne bag of purchased graphite would have a set of linked containerized files that carry the verifiable proof of the elements above including meta details like source, location, timing, source, chain of title, etc. Future articles will deal with how the truth of asset creation, credentials and identity are tied into the proof of a containerized asset. This is important as it addresses a number of risks, including having a fraudulent or forged details be introduced into the reserve backstop.
The next articles will dive further into address basic market capabilities that are needed and being built in the ADOT Web to power the TDN market including asset minting, treasury operations, custody, trading, payment integration and reporting.
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