How DCorp is Solving Cryptocurrencies Compliance Issues with the SEC.In the space of blockchain, and with an increasing number of startups beginning to offer their own ERC20 token or alt coin; one of the biggest setbacks is naturally going to be local government regulations, put in place against the sale and trading of securities to some specific countries citizens.
Many cryptocurrency tokens are undisputedly being classified by default as a security and this has been preventative in allowing a substantial sized investor base from taking part and contributing in the healthy growth these corporations and their contribution to the betterment of the decentralized economy.
In June of 2017, Dcorp had obtained support from 4,657 individual investors in their ICO, for their Venture Capitalism Platform that is truly democratized, and their Seed Project – A decentralized derivatives exchange, allowing for the tradability of Cryptocurrency Futures, Swaps, Options, and Warrants.
Dcorp, known for being completely decentralized in nature, has been avidly developing their VC Forum and Platform, in which every DRP holder has a vote in projects that Dcorp would fund. (ie. The derivatives exchange). Profits from these projects would be paid back to Dcorp, and the DRP holders are able to initiate a slew of governance proposals, one specifically being the issuance of profit sharing to all DRP holders. This alone is justification to consider DRP a security.
After the completion of the DCorp Crowdsale, the SEC had officially issued their ruling on what would or would not be classified as a security, and would require registration with them, which is known to be a very lengthy and possibly expensive process. Dcorp was now facing an issue, as there was seemingly no accurate way to determine how many of their DRP holders were citizens in the United States, or in any other jurisdiction where there are similar regulations in place. To register with the SEC and obtain full compliance a few weeks before release seemed to be an impossibility at this stage.
Dcorp’s own Frank Bonnet, alongside Marketing Manager Mike Balagna, have been collaborating and developing plans to execute a solution that accurately illustrates how Dcorp is pioneering this space. After receiving legal opinion from American based firms and approval from Dcorp’s lawyers, Maarten Jansen and Ruud de Kleijn, the Dcorp team team is putting standards into place that will set the benchmark and foundations for future of growth in the decentralized economy.
Introducing Dcorps Two Tokens
DRPS as indicated by its ‘S’ designation, will maintain the primary security functions of the DRP token as outlined within the Dcorp whitepages. DRPS will continue to provide ETH dividends to its holder, a 1-to-1 voting ratio through the exchange method of 1 DRPS for every 1 DRP, and provide discounts to any future initial coin offering that is introduced through Dcorp’s VC platform.
DRPU as indicated by its ‘U’ designation will become Dcorp’s utility token for those who are under strict compliance within their country of residence and will not pay ETH dividends. Instead, DRPU will naturally - through the exchange method of 2 DRPU for every 1 DRP - provide twice the voting power of that afforded by DRPS, and substantially higher discounts for any future initial coin offering that is introduced through Dcorp’s VC platform.
This strategy solves two major issues that DCORP and all DRP holders are facing:
⦁ It allows investors that are currently considered out of compliance to gain compliance in their respective jurisdiction.
⦁ It allows all exchanges to list safely list a version of DRP that is in compliance with the jurisdiction that they adhere to.
DRP will no longer be utilized as the main token that represents Dcorp and therefore not be considered a security anymore. All investors in Dcorp, or DRP holders will have two options available to them based on a token changer that will be immediately launched after the unlocking of the (old) DRP token.
In exchange for the currently issued DRP tokens, which are immutably locked as per the smart contract and until the release of the platform, Token holders will be prompted to perform a transaction to exchange their DRP to one of two newly created tokens, through the token changer which will be hosted on the Dcorp VC Platform.
The Dcorp Token ChangerA diagram that depicts how the conversion method will work within the VC platform:
As well as allowing the exchange of DRP to either DRPU or DRPS with zero fees incurred, this token changer will always allow investors to exchange their DRPU to DRPS, or vice versa. A minimal fee will be implemented for the swap between the two new tokens, and this in turn is in place to prevent attempted manipulation within Dcorp’s ecosystem.
This solution provides justification for Dcorp in having done everything in their power to ensure that all investors are made aware of the risks and the compliance regulations that are put in place.
This now allows DRPU, which is classified as a Utility, to be listed on American based exchanges with little to no blockades in compliance. This indirectly will allow DRPS, as a security, to concurrently derive value as well. The idea of a fixed rate token changer on the VC platform will provide in effect a set-ratio in value between the two tokens, allowing free reign of trading on registered exchanges worldwide, without the fear of setback from third party government regulations.
For media requests or additional details, and to learn more about the approach Dcorp is taking, feel free to reach out to Mike, by emailing
[email protected] Dcorp Official Newsletter Release – October 1st, 2017
http://mailchi.mp/642900e68b1e/dcorp-news?e=2768022e23
