# FAQs

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**Frequently Asked Questions (FAQ)**

* **What are sgTokens?**
  * sgTokens are permissionless ERC20 smart contract-wrapped tokens that represent the equivalent locked token inside the Singularity contract
* **Who can mint and burn sgTokens?** 
  * Only users who have completed KYB/KYC can mint or burn sgTokens.
* **Where is my KYC/KYB data stored?**
  * Your KYC/KYB data is stored with the third-party provider’s encrypted internal off-chain database. There is no link between your data & your on-chain wallet address, thereby protecting your on-chain anonymity.
* **Who can hold sgTokens?** 
  * sgTokens can be held by anyone and traded on permissionless markets.
* **Who receives staking rewards?** 
  * Reward points are distributed to holders of sgTokens. Once sold, the new holders receive subsequent rewards while the original holders retain their previously accrued rewards.
* **Will wallet addresses be checked on-chain?**
  * Yes, as part of the onboarding process, in addition to passing off-chain KYC/KYB, user wallets will go through on-chain analysis to ensure they are not on any sanctioned or blacklists.
* **Where can I check that sgTokens are indeed backed 1:1 by a locked token?**
  * See our contract: \[LINK COMING]
* **What is the value of sgTokens?**
  * sgTokens are backed 1:1 by the locked token in the Singularity contract so sgTokens should be 1:1 against the underlying token. As holders of sgTokens also receive additional points, some users may value sgTokens at a slight premium to the underlying token.<br>
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