In a press release published via PRNewswire on September 20, crypto startup DaoCoin revealed plans to open their stablecoin issuance infrastructure to firms with plans to issue their own stablecoin.
DaoCoin is an issuance infrastructure built for fiat-backed cryptocurrencies. It includes important features, such as a global network of fund management nodes consisting of multiple third-party trust companies, a blockchain-driven AML/KYC framework supported by global regulators, live APIs for real-time token-fund-matching disclosure and auditing mechanism to ensure full reserve, a set of streamlined, customizable eCommerce-style widgets to issue and redeem fiat-backed cryptocurrencies.
DaoCoin itself, however, is not a stablecoin. Instead, the firm offers its revolutionary infrastructure to issuers of stablecoins.
How Does It Work?
DaoCoin promises transparency and efficiency, but how do they plan on doing it? Funds are held in custody by trusted third-party companies worldwide and audited by accounting firms on a monthly basis. Both community operation and reserve management are independent of each other, and a mature trust mechanism is applied. Some of the most prestigious third-party companies help manage the security of the fund reserves. The firm provides real-time information on the Fund-Token matching is available both via the website and the API. Records of issuance and redemption are available on the blockchain and can be tracked by community members. Audits are done by trustworthy third-party auditors, who publish monthly audit reports to ensure transparency and openness in asset management. Token generation contracts are audited by third-party firms as well. The smart contract audits combine compliance, security, and a comprehensive checklist of known pitfalls and attack vectors, ensuring the security of the platform.
DaoCoin has also taken steps to improve the efficiency of the legal clearance and flow of funds, establishing a global network of AML checkpoints and fund-processing pipelines. Within each customer region, the company can automatically switch nodes to find the most efficient choice. This feature allows it to be constantly up-to-date and frees it from a centralized authority. DaoCoin adopted a Delegated Proof-of-Stake protocol, which allows KYC/AML cleared key partners to cash in their tokens in real time.
DaoCoin doesn’t stop there. Aside from leading the way in transparency and efficiency, it is also the first community-governed issuance infrastructure. DaoCoin issued its own ERC-20 governance token, DaoCoin Power (DCP). Token holders exercise voting rights, obtain gainsharing and are entitled discounts on fees. DaoCoin will also reimburse any fees paid for minting and redeeming tokens in the form of their token.
The firm is currently collaborating with several multinational retail chains and international commodity traders to help them issue their own brand of stablecoin.
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