MDLR guides · 06EN
Testnet and mainnet: what is simulated
The testnet exists to prove the mechanism in public. Some parts are the real thing; some cannot be real on a test network.
Real
The token and its no-freeze design, the controller's minting and redemption rules, the collateral registry, the multi-source price feed, the hedge keeper and its open short position, the hourly proof of reserves with its hashed statements, the timelock, and the public API.
Simulated: the gold
MockXAU stands in for gold. The issuer mints it; nothing backs it. Paxos's testnet PAXG is real test gold on Ethereum Sepolia, and it is listed, but its faucet does not dispense it, so none has been bridged.
On a test venue: the hedge
The hedge is open: a short PAXG perpetual on the Pactol testnet, margined in testnet USDC, so its margin and its profit or loss are test tokens too. Only the profit or loss counts in the reserve. The mainnet hedge is not decided: no venue outside the group accepts gold as margin, so the options are a capped stablecoin margin sleeve counted as issuer capital, gold futures or forwards, or Pactol alone with a lower supply cap.
Missing until mainnet
An offshore issuer and counsel's opinions on its structure, geofencing, identity checks at mint and redeem, real gold (PAXG or XAUT at first, MGLD later), a monthly independent attestation, an independent audit, a written wind-down plan, and a 7-day timelock with a multisignature proposer.
Note
Anything the testnet shows about gold is a demonstration of the mechanism, not evidence that gold is held.
Nothing on these pages is an offer, a solicitation or a recommendation to buy, sell or hold any asset, in any jurisdiction. Test MDLR is not sold and has no value.