The conversion rate from IPMB Tokens to GeM NFTs is floating and changes depending on the price of gold and the price of the IPMB Token.
If the price of IPMB falls below the price of 1 gram of gold, then IPMB guarantees a conversion rate of 1 IPMB to 1 gram of GeM NFT, protecting the weight value of the IPMB Token.
In the case where IPMB Tokens are worth more than 1 gram of gold, then to convert IPMB Tokens to GeM, you only exchange the value equivalent of IPMB Tokens.
For example, assume IPMB Tokens are worth twice the price of 1 gram of gold, and you have staked for 12 months for an 11% discount.
For a GeM100, you would only need to tender 44.5 IPMB Tokens for the conversion, after staking 50 IPMB Tokens.
This mechanism protects IPMB holders when the price falls below the underlying price of gold, but maximises the value of their tokens when the price is above that threshold.