what you saying makes no sense.
why would coins have to be destroyed? what good would that do other than destroy the ability to keep buying gold?
you buy gold, the coins are resold on the exchange and used to buy even more gold...its really simple to understand
I think he's under the impression that Gold is being bought directly for gold. Its not. Even if it was then still no need to destroy the coin. That would be like destroying fiat currency after you buy gold. Theres no need the receiver of fiat to burn after selling of said gold.
That's not how financial transactions work.
It is simple to understand that XGR would buy more gold... I am just throwing out another idea to avoid the XGR BTC FIAT GOLD loop and the fees and conversion costs which COULD slowly degrade the backing
If the coin is destroyed the main variable on XGR price would be the price of Gold itself since the amount of Gold to existing coin ratio remains the same.
Ok, about the idea: Gold is there to back up the entire amount will be existing after POS end, so 40 mill. Buyback program will start only if interest about the coin is low and the price will go under a certain level. Lets say minimum buyback price will be 1000 sat. When price in a major exchange go under that, coin holders can sell their coins directly to me, via an exchange which will be created only for this purpose.
After that, there can be 2 scenarios,
1. interest goes up again, coin price rise over 1000 sat. Then I can sell the coins with a profit, profit will goes to Gold Fund, minimum buyback price will be higher.
2. Interest goes lower and lower, eventually coin dies. Then I will have 40 mill coins. Ex coin holders have their BTC from the buyback program. End of story.
Final thought: I hope that I can maintain this coin and upgrade it in a way that the Buyback program will never trigger, so Gold Fund will be there only for insurance.
P.S.: How I will manage to grow the Gold Fund after I sold the premine? Good question, I have some ideas, but they have to be a secret to get it through. Nothing shady, only normal market strategies.