Imagine a more efficient and transparent way to manage the distribution and trade of ammunition. AmmoCrypt brings this vision to life using blockchain technology to tokenize ammunition assets. By creating a digital representation of bullets and other ammunition, AmmoCrypt provides a secure, regulated marketplace for trading these assets.
Through a unique two-tier token system—Kaliber Tokens for specific ammunition and YEET Utility Tokens for various ecosystem functions—AmmoCrypt ensures that only verified users who meet strict KYC and regulatory requirements can take physical delivery of ammunition. This system not only streamlines the allotment and distribution of weapons and bullets but also enhances transparency, reduces illicit trade, and improves overall supply chain efficiency.
AmmoCrypt aims to create a secure, transparent, and decentralized platform for the direct purchase and trade of tokenized small arms ammunition. By providing a stable and liquid market for ammunition tokens, AmmoCrypt enhances end-user availability while reducing industry price volatility. This innovative platform increases manufacturer margins and cash flows and significantly reduces illicit trade by ensuring that all transactions are transparent and legally compliant. Additionally, AmmoCrypt offers a new, secure, and efficient means of peer-to-peer trade of tokenized ammunition, revolutionizing the ammunition market with improved efficiency, security, and accessibility.
AmmoCrypt’s Vision and Goals
- Future Physical Delivery: In the future, AmmoCrypt plans to allow users to receive physical delivery of ammunition. This feature is expected to be available in the third quarter of 2024.
- US Consumer Restrictions: When physical delivery begins, it may not be available in areas where it’s prohibited by law in the US. For users outside the US, they may need export licenses and could face higher minimum exchanges or fees. More details can be found in AmmoCrypt’s “Physical Delivery Terms and Conditions.”
- Key Objectives:
- Establish a decentralized and secure platform for tokenizing ammunition assets.
- Ensure that holders of Kaliber Tokens can choose physical delivery, regardless of market conditions.
- Ensure compliance with regulations and manage risks for all participants in the AmmoCrypt Ecosystem.
The Token Model
All AmmoCrypt Tokens are Ethereum Virtual Machine (EVM) compatible smart contract tokens issued on the Polygon blockchain network. The ecosystem uses a unique two-tiered token structure, comprising the Kaliber Token Family and the YEET Utility Token.
Kaliber Token
Each token in the Kaliber Token Family represents one round of ammunition of a specific caliber that has been deposited into the AmmoCrypt Physical Reserve by an authorized minter when the token is created. Each Kaliber token has its own inventory, supply, demand dynamics, and trading characteristics. Initially, there will be five Kaliber Tokens available, each representing one of the most common firearms calibers. More Kaliber Tokens for additional calibers will be introduced later. Users can propose additional calibers for tokenization through a community-driven mechanism.
AmmoCrypt tracks three supply metrics for each Kaliber Token in real-time on the Polygon blockchain: Total Tokens Outstanding, Redeemable Tokens Outstanding, and Readily Deliverable Reserve Balance. These metrics guarantee that there’s always enough physical ammunition in the reserve to cover all token redemptions.
YEET Token
The YEET Token is AmmoCrypt’s Utility Token, used for various functions within the Ecosystem. Although YEET doesn’t represent ammunition directly, it’s essential for specific actions:
- Minting Kaliber Tokens: When creating new Kaliber Tokens, minters must deposit YEET along with the corresponding physical ammunition.
- Redeeming Kaliber Tokens: To exchange Kaliber Tokens for physical ammunition, users need to deposit YEET.
- Creating New Kaliber Tokens: YEET is required to introduce a new type of Kaliber Token into the Ecosystem.
YEET serves as the utility token in the AmmoCrypt Ecosystem, mainly used for activities involving additions or withdrawals from the Physical Reserve inventory. For instance, when holders want to redeem their Kaliber Tokens for physical ammunition, they must deposit both their tokens and the required quantity of YEET to access the Physical Delivery Smart Contract.
Verification and Compliance
Certain actions within the AmmoCrypt Ecosystem, like KYC verification, require users to deposit YEET for processing and receiving a non-transferrable “SoulBound NFT.” The total supply of YEET is capped at 15 billion, with 2.392 billion initially distributed and the rest stored in the AmmoCrypt Community Wallet. This wallet supports ecosystem expansion and maintenance through market-based sales of YEET.
Detokenization
Detokenization in the AmmoCrypt Ecosystem refers to the process of requesting Physical Delivery of Ammunition. It’s not automatically granted with token holding but is available under specific conditions: the user must undergo KYC, reside where Physical Delivery is allowed, hold the required Kaliber and YEET Tokens, and be ready to settle associated fees. To initiate Physical Delivery, the user deposits the necessary tokens and signs a smart contract with their KYC verification token. A “Physical Delivery NFT” is then created, tied to the user’s wallet and cannot be traded. The associated Kaliber Tokens are burned, and a portion of YEET is consumed. Users provide shipping details on the AmmoCrypt website, and fees are automatically calculated and can be paid in fiat or AmmoCrypt Tokens.
Import/Export
Compliance with export and import laws is essential when redeeming AmmoCrypt Tokens for ammunition, ensuring adherence to US regulations and import controls in the destination country. Users must comply with documentation requirements and pay associated fees. Redemption for individuals ineligible to possess firearms or ammunition is prohibited, with activities conducted by licensed entities under contract to AmmoCrypt. Reserve audits are performed by licensed accounting firms, and the AmmoCrypt ecosystem undergoes continuous development to enhance performance, security, and regulatory compliance.
Conclusion
AmmoCrypt is revolutionizing the ammunition market with blockchain technology, creating a secure and transparent platform for trading tokenized ammunition assets. By leveraging a unique two-tier token system and ensuring compliance with regulatory requirements, AmmoCrypt enhances supply chain efficiency, reduces illicit trade, and offers a new avenue for peer-to-peer trade. As AmmoCrypt continues to develop and introduce new features, it aims to provide a stable, liquid, and compliant market for ammunition tokens, benefitting manufacturers, consumers, and the broader industry.
