Union of Wealth Fund!
Fiat currencies are regulated and controlled by a centralized body such as the government or the Central bank, or by both entities. Stable national currencies managed by governments and central banks are essential for commerce, trade, and the overall economy.
Sovereign Digital Currency
The rise of blockchain technology has given way to a new currency, which is Sovereign Digital Currency. Fiat currencies are similar to sovereign digital currencies as they act as a currency that has been centralized by a government or central bank. The central authorities within a sovereign nation sanction the use of SDC as a legal form of payment within the borders of a country. The new currency differs from Fiat cash in that it gives central authorities an efficient way to track transactions of users. Cash, by comparison, is nearly impossible to be monitored and accounted for.
SDC gives central authorities a way into the ever exploding cryptocurrency sphere by centralizing the usually decentralized point to point transactions of cryptocurrencies.
A few countries have been developing the concept of SDC cryptocurrencies. Japan has mentioned that they have started the process. The J-Coin is a cryptocoin that has the cooperation of the Japanese Banks. The J-coin is planned for launch around the time of the Tokyo 2020 Olympic Games. Estonia has also mentioned that it will launch its own government-backed cryptocurrency called the ‘Estocin’ through an ICO. (1)
Laccoin or the LAC token is not an SDC. It shares traits, but also vastly differs from SDCs in certain ways. LAC tokens are a form of payment for daily transactions, but differ from SDC as they can be used as a form of payment regardless of national borders. The LAC token’s intended use is as an alternative to the current payment and remittance systems that encompass Latin American and Caribbean Regions. LAC token acts as a viable alternative to the existing old money framework that combines technology and cultural nuances of the region with the groundbreaking technology offered by blockchain.
History of Sovereign Wealth Funds
Sovereign Wealth Funds have traditionally been set up by nations to manage excessive central bank reserves. These reserves result from trade surpluses and revenue received from exporting resources. (2)
A sovereign wealth fund in its most basic form is a fund management company that has its objectives set by the owners of the fund. In this case, the owners are the government. The investment approach of Sovereign Wealth funds run parallel to many investment funds. They are structured to provide maximum diversification, but run counter to a lot of Hedge Funds and central banks on time frame. Whereas Hedge Funds and central banks take a short-term investments in assets, SWFs take an extraordinarily long-term approach.
Union Wealth Fund (UWF)
What are countries going to do once their SDC or Digital Currency becomes widely adopted and start to generate excessive profits? How will they reinvest the profits to create benefits for the citizens of their respective nations?
Laccoin has come up with a unique way to ensure that its token holders receive the utmost priority within its ecosystem, which in turn acts as an altered sovereign wealth fund.
Laccoin will create an index fund that will act as a “Union Wealth Fund.” UWF operates as an SWF by taking care of its community regardless of what country they reside within. Imagine some citizens from countries within the region receiving the benefits of an SWF without borders. The idea is rather simple:
Let’s say a person in a LAC region uses their LAC debit card and swipes it at a store for a total transaction of $1000. Once the card has been swiped, the issuing bank, as well as Visa or MasterCard, will take a percentage of the purchase.
To illustrate, let’s say 4% of the purchase is held back. The issuing bank takes its commission which is 10 dollars, and Visa or MasterCard take their commission which $15. Out of the $40, $15 is left. The issuer receives another $5.
So now we have 10 dollars left which goes to Laccoin. Out of that $10, we would take $4 and split it into three different categories. 10% goes to Level 1 token holders, 30% to level 2 token holders 50% to level 3 token holders. At the end of every month, we would go into the open market and purchase the token equivalent for one of the three levels and distribute it to the respective groups. We take the other $2.5 and send it to the LAC Union Wealth Fund where token holders would have another means of getting long-term benefits.
The realization of UWF has been brought into existence because of blockchain technology. This unique financial instrument can be tactical and surgically provide economic prosperity to those that couldn’t be helped before. The borderless finance revolutions will continue to evolve and continue to bring the best available finance instruments to people in all walks of life.
https://blog.goodaudience.com/union-of-wealth-fund-f172959b373b 
