Minting Procedures

The "one to one" rule, i.e. the rule that every unit of value present in the Pecunix database has at all times a corresponding value of gold stored in an internationally approved vault, is the fundamental basis for all Pecunix security.

But how do we know that the gold is real?

And how do we know that the weight of gold in the vault really equals the value in the Pecunix database?

The answer to both questions is: because four organisations tell us so. To ensure absolute integrity, three of these organisations - the Bullion Agent, the Escrow Agent and the Auditor - are completely independent third parties with no financial interests in Pecunix whatsoever.

Minting Pecunix

If the value of gold in the Pecunix system is to be altered, four separate agents - the Bullion Agent, the Escrow Agent, the Auditor and the Currency Issuer - must be involved in the following progression to ensure secure transfer.

1. Approved gold bars arrive at the vault. Representatives from the Escrow Agent and the Bullion Agent witness the actual gold bars secured in the vault.
   
2. The Bullion Agent records the weights and marks of the gold bars and allocates them to the account of THE PECUNIX FOUNDATION under the watchful eye of the Escrow Agent.
   
3. The auditor examines the entry made by the Bullion Agent to ensure that all details correspond with the actual weight of the gold bars that have been witnessed in storage.
   
4. When currency is to be created, the Issuer sends a Mint Request from a secure Pecunix system interface to the Auditor and the Bullion Agent. They each verify the exact amount of gold entered into the system, the exact amount of Pecunix that is to be minted, and the specific account that the Pecunix is to be paid into. They each PGP-sign the request to authorise it. Once all three signatures (Issuer, Auditor, Bullion Agent) are submitted to the system, the secure Pecunix software mints the currency to the relevant account.
   
5. When currency is to be destroyed, the same process is repeated in reverse. Once all signatures are in, the correct amount of Pecunix currency is destroyed from the designated account. Only once the currency has been destroyed will the Foundation Council release the relevant gold bars from the vault.
   
   

Because this progression requires the active participation of independent third parties, Pecunix account holders can be sure that the gold underwriting the currency is not only pure, its value is also accurately represented online.

Ongoing Financial Integrity

Periodically, the Auditor performs an audit on the gold stores. The Auditor issues reports that are displayed on the Pecunix web site. Account holders can click here to view these reports to be sure of the ongoing integrity of the currency.