Brilliant Diamond Exchange White Paper

Introduction The Brilliant Diamond Exchange (BDE) introduces a revolutionary platform designed to provide a stable secondary market for the trading of fractional ownership of Fancy Colored Diamonds ranging in price from $10k to over $10 million per diamond. This white paper outlines the innovative mechanisms of the exchange, its governance structure, and compliance strategies to align with global regulatory standards.

Exchange Overview The BDE leverages the Hedera Hashgraph distributed ledger (blockchain) technology to facilitate the secure and transparent trading of fractional diamond shares. Each colored Diamond is first offered to accredited investors through a SEC-approved Simple Agreement for Future Tokens (SAFT), known as an Initial Diamond Offering (IDO). Once an IDO is complete, the fractional shares are available to the public for trading on the BDE as commodities, adhering to observed market patterns and regulatory frameworks.

Tokenomics The total supply of $BDE tokens is capped at 1,000,000,000 to ensure economic stability. The token distribution is as follows:

  • SAFT Qualified Investors: 21.0%

  • Ecosystem Development: 17.3%

  • 7.5% Guaranteed Staking Rewards: 15.0%

  • Regulators (CFTC/SEC): 15.0%

  • Founding Team: 14.7%

  • Unallocated Supply: 10%

  • Development Team: 3.5%

  • Early Team Members: 3.5%

Operational Mechanics The BDE incorporates an AI-driven social liquidity pool (SLP), funded by a 1% - 3% transaction fee on all $BDE, IDO and secondary market activities. This pool ensures that diamond prices align with market values by providing liquidity and price stability. As volume on the platform increase we expect to bring the transaction fees down to under 1%.

Governance Governance of the BDE is conducted through a DAO, utilizing the $BDE token for voting rights and profit sharing. Proposals for changes within the platform are managed through Exchange Improvement Proposals (EIPs), which are voted on by $BDE token holders.

Regulatory Compliance The BDE commits to high standards of regulatory compliance, including KYC and AML protocols, to secure operations and align with global regulations. Legal frameworks and continuous education ensure that the platform adapts to legal challenges efficiently.

SAFT Overview

  • SAFT 1: Targets a $3 million capital raise, at a price of $0.03 per $BDE, released over five years.

  • SAFT 2: Targets $10 million, at a price of $0.17, released over three years.

  • SAFT 3: Targets $15 million, at a price of $0.34, released over three years.

Use of Funds Funds raised through SAFT agreements are allocated to:

  • Initial Development: 15%

  • Legal & Regulatory Compliance: 15%

  • Operations & Administration: 25%

  • Marketing and Community Engagement: 35%

  • Contingency Fund: 10%

Strategic Goals The BDE aims to establish itself as the leading platform for diamond trading with fractional ownership, focusing on security, compliance, and user engagement to facilitate growth and stability in the diamond market.

Conclusion The Brilliant Diamond Exchange offers a unique proposition in the luxury asset space, combining the security of blockchain technology with the longstanding value of diamonds. Through careful planning, robust governance, and strict adherence to regulatory standards, BDE is poised to redefine how luxury assets are traded globally.

This white paper serves as a foundational document to attract investors, users, and partners to the Brilliant Diamond Exchange, ensuring a comprehensive understanding of the platform’s objectives, operations, and future plans.