Redeeming the Physical Gold Bar

• GCTs that have been redeemed should be permanently removed from circulation using ordinals inscription native burning.

• Burning is performed by constructing a transaction that spends the inscription to a script pubkey beginning with OP_RETURN, rendering it unspendable.

• When performing a burn, vendors must include standardized CBOR metadata in the inscription to record the redemption event.

Redemption Burn Metadata Format

{
  "burn_type": "redemption",
  "external_url": "https://vendor.com/redemption/XYZ123456.pdf",
  "signature": "3045022100dff...f83c",
  "notes": "Delivered to vault client at London desk"
}

• burn_type must be set to "redemption" to distinguish from other types of burns.

• external_url (optional): A URL pointing to any external reference related to the redemption event.

• signature: A public signature (e.g., DER-encoded) generated by signing a known message with the private key that held the GCT prior to burning. This allows suppliers to later verify that the redeemer of the physical gold bar owns the wallet used for the burn event.

• notes (optional): Freeform notes attached to the GCT, which may include messages, dedications, or memetic content.

This burn metadata will be permanently attached to the burned inscription, creating an immutable on-chain record of the redemption event.

Redemption & Security Considerations

While the Bitcoin Gold Protocol standardizes how GCTs are minted and redeemed, vendors and users should follow best practices to ensure safe and trustworthy redemption processes. The following points are recommendations, not protocol rules, but are essential for real-world implementation.

Burn Before Redemption

• Vendors must not process physical redemption unless the corresponding GCT has been burned using an OP_RETURN-based inscription.

• Burn metadata should be included and follow the standard format.

Ownership Verification (Optional but Recommended)

• Vendors require the holder to sign a message from the GCT's current address as part of the redemption process. This signature will be added to the burn metadata.

Preventing Spoofed or Fake GCTs

• GCTs should only be considered valid if they are direct children of a recognized Vendor Root inscription.

• Parent/child ancestry is used to verify origin and validity.

Vendor Role

• Vendors should clearly indicate a GCT’s status where ever they are displaying them:

  • Active: valid and unburned

  • Redeemed: verified redemption

  • Invalid: does not follow the metadata standard or not under a valid vendor root

• It is recommended that vendors only show Active GCT’s where users can trade them.

Finality Warning

• Burning a GCT is permanent and irreversible. Users should be clearly informed before initiating this action.

• Vendors should display a “finality disclaimer” before allowing a redemption burn.