# Future Gold Tokens

## What are Future Gold Tokens?

### The Concept

**Future Gold Tokens (FGT) represent immediate ownership of gold that hasn't been mined yet.** When you hold an FGT, you legally own a specific quantity of gold from a verified mining project through a bailment agreement, even though that gold is still in the ground.

This is fundamentally different from futures contracts or derivatives. You own the physical gold immediately. The mining company acts as your custodian (bailee), holding the gold on your behalf while it's extracted and refined according to the agreed timeline.

### Standard Characteristics

**Token Representation:**

* Typically 1 token = 1 gram of unrefined gold
* Backed by geological surveys and resource verification
* Fixed quantity that cannot be changed
* Each project may have different specifications

**Maturity Dates:**

* Each FGT project has a specific maturity date
* Indicates when gold will be extracted and refined
* Example: Tokens with 2028 maturity means extraction by end of 2028
* Different projects offer various timelines

**Pricing Structure:**

* Sold at a discount below current gold spot price
* Discount compensates for time until extraction
* Reflects services included (extraction, refining, storage)
* Provides early capital to mining companies

**Legal Framework:**

* Bailment agreement establishes ownership
* You are the bailor (owner)
* Mining company is the bailee (custodian)
* Ownership rights protected under bailment law

## How Future Gold Tokens Work

### The Token Lifecycle

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#### Purchase

Buy FGT at discounted price. Bailment agreement takes effect immediately, establishing your legal ownership.
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#### Holding Period

Gold remains in ground under mining company custody. You can transfer tokens, use as collateral, or hold until maturity.
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#### Extraction

Mining company extracts gold according to agreed timeline. Process monitored and verified.
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#### Refining

Extracted gold refined to specified purity (typically 99.9%). Company responsible for all refining costs.
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#### Conversion

At maturity, your FGTs can be converted to Refined Asset Tokens (like AuSG), or you can request physical delivery subject to minimum quantities.
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### Using Future Gold Tokens

#### Hold Until Maturity

**Long-term ownership strategy** where you keep tokens through extraction and refinement:

* Convert to refined asset tokens at maturity
* Request physical delivery (subject to minimums)
* Purchased below spot price
* No ongoing fees or charges

#### Use as Collateral

**Access liquidity without selling** by depositing FGTs into vault smart contracts:

* Borrow [AuUSD stablecoin](https://auresources.gitbook.io/help-center/auresources-ecosystem/tokens/auusd) against your tokens
* Interest rate: 0.1% annually
* Lower loan-to-value (LTV) ratio than refined gold tokens
* Reflects pre-extraction risk

Learn more in the [Vault documentation](https://auresources.gitbook.io/help-center/auresources-ecosystem/defi/vault).

#### Transfer or Trade

**Secondary market options:**

* Transfer tokens to other wallets
* New owner accepts bailment terms automatically
* Trade on supported platforms (Not available yet)
* Price typically approaches spot as maturity nears

## Technical Details

### Token Standards

**Blockchain:** Polygon PoS

**Token Standard:** ERC-20

**Network Details:**

* Native multi-network through LayerZero integration
* Primary deployment on Polygon
* Cross-chain transfer capability
* Compatible with 400+ wallets

### Smart Contract Features

**Key characteristics:**

* Transparent on-chain ownership
* Standard ERC-20 functions
* LayerZero OFT (Omnichain Fungible Token) standard

### Verification

**Resource backing:**

* Geological survey reports
* Independent verification
* Regulatory compliance documentation
* Annual audits of physical reserves

**Transparency:**

* All transactions on-chain
* Contract addresses published
* Real-time supply tracking

### Contract Addresses

<table><thead><tr><th width="99">Contract</th><th width="149">Network</th><th>Address</th></tr></thead><tbody><tr><td>PGF-28</td><td>Polygon PoS</td><td>0xEB6BA855254cB72AF314b5B79628780FA6B5B7be</td></tr><tr><td>PGF-29</td><td>Polygon PoS</td><td>0x3e6eC666845663eCE1674DD13404bF8fdd3d8532</td></tr><tr><td>PGF-30</td><td>Polygon PoS</td><td>0x412Cf0dbEd72cc762796A14C76662461F550f69A</td></tr></tbody></table>

### Contracts Sources

Source code can be found on our [public Github Repository](https://github.com/auresources/contracts/blob/main/src/tokens/FUTURE_TOKEN.sol).

## Key Takeaways

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Future Gold Tokens provide immediate legal ownership of gold that's still in the ground. You purchase at substantial discounts, with the discount compensating for time until extraction and services provided by mining companies.

Different FGT projects exist with various maturity dates and mining operations. Choose based on your timeline and desired discount. Shorter maturities offer smaller discounts but sooner access, while longer maturities provide larger discounts but require more patience.

FGTs can be held until maturity, used as collateral for borrowing AuUSD, or transferred to others. The bailment structure ensures you legally own the gold throughout the entire process. At maturity, gold is extracted and refined, allowing conversion to spot gold tokens or physical delivery. AuResources guarantees delivery even if the original producer faces issues.
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