Proof of Reserves
How AmmoMarkets verifies that every token is backed by physical ammunition.
Proof of Reserves is coming soon. This page describes the planned system.
The Concept
Every ammunition token issued by AmmoMarkets is backed 1:1 by physical ammunition in a secure warehouse. Proof of Reserves is the mechanism that verifies this backing is maintained at all times.
How It Will Work
The Proof of Reserves system will have three components:
On-Chain Supply Verification
The total supply of each token is publicly verifiable on-chain at any time. Anyone can query the smart contracts to see exactly how many tokens exist for each caliber.
Monthly Warehouse Audits
An independent third party will conduct monthly physical counts of warehouse inventory and publish attestation reports confirming that the physical supply meets or exceeds the on-chain token supply.
Dashboard
A public dashboard will display real-time data:
- Total tokens in circulation per caliber
- Last verified warehouse count
- Attestation history and audit reports
Precedents
This model follows established patterns in tokenized commodities:
- XAUT (Tether Gold) — each token backed by physical gold in a Swiss vault
- PAXG (Pax Gold) — London Good Delivery gold bars, audited monthly