Diamond Standard CaratPrice

(CARAT)

Diamond Standard Carat (CARAT) is a digital commodity token issued by Diamond Standard. It represents a fixed fraction of physical, natural diamond commodities (Diamond Standard Coins and Bars) held by global custodians like Brinks. When these physical diamond commodities are held in an approved vault, they are represented as digital tokens (BCC/BCB) on the Hedera Network. The CARAT token is then autonomously derived from these BCC/BCB tokens, providing title to a fraction of a Diamond Standard Coin.

CARAT aims to financialize diamonds, making them accessible for investment and use in digital payments by reducing traditional barriers. It supports Web3 Payments as a decentralized, asset-backed commodity, useful for cross-border transactions, remittances, gaming, and loyalty programs. For investment, it offers an alternative to stablecoins due to diamonds' low volatility. It also addresses the challenge of tokenizing a high-value physical asset like diamonds onto the blockchain in a standardized, fungible manner.

The price of CARAT tokens is directly linked to the price of Diamond Standard Commodities (Diamond Standard Coin and Bar). The price for these underlying commodities is published daily on financial data providers like LSEG and Bloomberg. As each Diamond Standard Coin corresponds to 5,000 CARATs, the CARAT price reflects a fractional value of the underlying commodity's market price.

CARAT tokens can be traded on centralized crypto exchanges. For example, it is available on a popular crypto exchange where CARAT/USDT is an active trading pair. Additionally, CARAT can be bought or sold via authorized wallets and exchanges, such as Blade Wallet and HashPack Wallet, and directly from the Diamond Standard wallet interface.

Diamond Standard CARATs can be redeemed for physical Diamond Standard Commodities. A minimum of 5,000 CARATs is required for such an exchange. The underlying physical diamonds, which back these CARAT tokens, are securely held by global custodians, including reputable firms like Brinks. This process ensures a direct link between the digital token and its physical asset.

There is no fixed supply of CARAT; new tokens are created as additional Diamond Standard commodities are produced and added to the reserve, thus the supply is directly limited by the quantity of physical commodities. Owners of Diamond Standard Coins or Bars can create CARATs by exchanging their commodity tokens or by leasing their commodities to the CARAT Smart Contract. No advance tokens are allocated to employees or VCs. Operational costs are covered by a 1.5% per annum fee on the reserve, collected via a gradual adjustment in the CARATs per Diamond Standard Coin ratio, governed by a DAO.