Carats Ecosystem
  • Intro to the Carats Ecosystem, a DAO governed by Bitcarbon
  • CARATS
    • Carats Intro
    • Ecosystem Overview
    • Carats Details
      • Carats Key Features
      • Carats are Commodity Tokens
      • Decentralized, User Managed Reserve
      • Carats Creation
      • The Carats Ratio
      • Carats Redemption
      • Carats Integration to Investment Products
      • Multi-blockchain; Liquidity
      • Recourse and Law Enforcement
      • Regulatory Oversight
      • Money Transmitter Considerations
      • Carats vs. Gold, Bitcoin, and Tether
      • Carats Commodity Architecture
      • Carats Benefits and Use Cases
      • Improving Upon Stablecoins
      • Carats Tokenomics
      • Carats White Paper
    • Liquidity Provision
  • CARATS.CC (MOBILE APP)
    • Mobile App Overview
    • Mobile App Details
      • Platforms and Regions
      • Buying Carats
      • Sending Carats
      • Selling Carats
      • Selling Carats for Local Currency
      • Advanced Features
        • Security & Backup
        • Two Party Escrow
        • Exporting and Restoring Your Wallet
    • White Label Carats Apps
  • BITCARBON
    • Bitcarbon Intro
    • Carats Access & Discounts
    • Value Accrual
    • Bitcarbon Details
      • Bitcarbon: The Governance Token for the Carats Protocol
      • Bitcarbon Governance Process
      • Trading Bitcarbon
      • Contemplated Additional Features
      • Bitcarbon Tokenomics
      • Bitcarbon Sale
  • TECHNICAL RESOURCES
    • Smart Contract Addresses
    • Smart Contract Audits
    • Carats API Guide
    • Carats Bridge
  • COMMUNITY
    • Media Coverage
    • Sites & Community
  • LEGAL
    • Carats User Agreement
    • Carats Platform Terms of Use
    • Privacy Policy
  • RESOURCES
    • Brand Kit
      • Carats Logos
      • Bitcarbon Logos
      • Graphics
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  1. CARATS

Ecosystem Overview

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Last updated 1 year ago

Carats are issued by Diamond Standard Coins and Bars held in custody by approved custodians. The owner of the physical commodity token elects to convert it into Carats by staking the whole-commodity token to the Carats Smart Contract.

That Diamond Standard Coin or Bar becomes part of the Carats reserve, and can be redeemed by any Carats holder who returns enough Carats to the Carats Smart Contract.

In order to create Carats on demand for users, DSAM LLC (Diamond Standard Asset Management) leases commodities from investors in real time, converts them into Carats and sells them. If those Carats are not returned within 30 days, DSAM uses the proceeds to purchase additional commodities for the reserve.

The Carats Smart Contract manages the commodity reserve and generates fees, by slowly increasing the number of Carats per commodity held in the reserve. The fees do not diminish the users' balance.

Bitcarbon tokens govern the Carats Foundation and the Decentralized Autonomous Organization (DAO) behind the Carats protocol.