# Why GoldMint? ## What makes $GLDM different from other algorithmic tokens? Unlike previous algorithmic tokens, $GLDM is not pegged to a layer 1 token like FTM or AVAX or to a static stable coin like MIM— it is instead pegged to 1 oz of pure Gold. Why is this? GoldMint.Finance believes in the potential value of bringing highly fungible gold to the blockchain and has chosen to derive its value from Gold's future growth in usage and value. $GLDM aims to become the main medium of exchange on Ethereum: this will be achieved by providing a mirrored, liquid asset to Gold. One of the primary failures of other “algo” tokens has been a lack of use cases, leaving no good reason for somebody to want to use or hold them. In order to successfully maintain the peg, in the long run, the GoldMint team will maintain a focus on innovation around enhanced functionality and use cases. This starts with an approach where we achieve a highly liquid, easily exchangeable asset, pegged to gold on the blockchain. This will allow the high APR and bonding discounts provided by Defi to be applied to a token that is pegged to the price of gold. Opening a whole new market for a high-yield bearing gold pegged holding for the first time in history. ## Why choose GoldMint Finance? Why have a token that’s pegged to the price of Gold via Pax Gold Token, a fully backed 1:1 stable coin, when you could just use the PAXG token, traditional gold commodities, or even physical Gold itself instead? Using an analogy: if Gold is intended to be an ideal universal store of value, and the blockchain is supposed to be a secure universal medium of exchange GLDM is the logical decentralized alternative to traditional stable coins or physical Gold, what will happen when there just isn’t enough Ethereum-native PAXG or even physical Gold not on the blockchain to go around? If $GLDM succeeds in holding the peg, this will create a mirrored, liquid asset that can be moved around and traded without restrictions, all while benefiting from the price appreciation of Gold itself via PAXG the premier Ethereum native Gold-backed stable token. Reaching the peg and holding the peg is crucial, and this will ultimately be what drives the value of $GLDM for investors. In the short term, this would mean attractive APRs for liquidity providers on what would essentially be a stable pair. So, once a liquid market is the norm, what happens next? What are some other reasons you’d want to hold $GLDM? $GLDM aims to become the primary value token on the Ethereum network The selection, development, and deployment of the next generation of Algorithmic Commodity Pegged DeFi projects will be decided by those who hold $SGLDM, $GLDM’s governance token (affectionately referred to as “the money printer” by those who participate in TOMB). We will be referring to it as the “Gold Printer”. ## I keep seeing that GoldMint has the potential to become a major medium of exchange, why? You may have read that by pegging to Gold, $GLDM hopes to become a highly liquid, mirrored asset. What does this actually mean, though? As an example, say one day that physical gold becomes the world's main medium of exchange. Everything is measured in terms of gold, whether that's your weekly salary, or whether it's the price of bread or a computer. And you need gold to buy literal gas to get to the bakery, or to the computer store. But imagine if nobody wanted to use their physical gold, and preferred to keep them under their mattresses instead. Since the value of everything gravitates in relation to the gold, there would need to be something out there that is 1:1 "interchangeable" with the gold, so that even if all the gold in the world were tucked under mattresses, people could continue to transact freely. Knowing that whatever they received would be able to be traded in for gold at whatever point in time they so desired. That's what $GLDM hopes to become for Gold. And we hope as more and more people embrace gold as a store of value and gauge for measuring the value of other goods and services that people will be interested in a system that is both pegged to gold and provides great yield to the protocol participants. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://goldmintfi.gitbook.io/whitepaper/frequently-asked-questions/why-goldmint.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.