DaoCoin Stablecoin Issuance Infrastructure Framework To Add Transparency To Fiat-Currency Backed Tokens
DaoCoin currently functions as an issuance infrastructure for all cryptocurrencies being backed by fiat currency. Its issuance infrastructure currently comprises of live APIs for use in real-time token fund matching, a KYC/AML framework driven by blockchain technology, and an auditing mechanism for use in ensuring full reserve.
In addition, it also comes with a global fund for use in node managements that mainly comprise of third-party trust companies as well as a customizable set of e-commerce like widgets. The widgets are mainly used in issuing and redeeming the fiat-backed currencies.
The Open Infrastructure
By providing access to the open infrastructure, all qualified third-parties will now be better-placed to issue their own versions of stablecoins. The stablecoin can be described as a special kind of digital asset that is able to maintain a particular value against asset prices.
It is, however, important to note that DaoCoin is by its own rights not a stablecoin. All it does is provide the infrastructure that can then be used to create the stablecoins. The most important function served by DaoCoin is that it is able to produce a stablecoin that is in a position to address the efficiency, and transparency issues currently plaguing the existing coins, e.g., DAI.
How Does DaoCoin Address Efficiency And Transparency Issues At A Go?
All its funds are held by trusted third-parties located all over the world. Accounting for these funds is done on a monthly basis by trusted accounting firms. Reserve management and community operations are very different and are normally run independently. A trust mechanism is applied for these two on a regular basis.
Prestigious third-party companies from across the world are recruited and tasked with their management responsibilities. The third-parties are also in-charge of ensuring and guaranteeing the security of the reserves.
Real time data pertaining to information disclosure on the Fund-Token is made available through its website and application programming interface. Redemption and issuance records can also be tracked using the blockchain infrastructure. All the community members are also provided with access to these records.
Auditing tasks are completed by trusted third-party auditing companies. These are companies that are known to conduct strict audits, as well as adhere to the highest auditing standards possible. The companies tasked with performing the auditing roles have to publish monthly reports in a bid to guarantee openness and transparency in asset management.
The token generation contracts also undergo strict auditing also carried out by third-party companies. When auditing the smart contractors, the auditors have to combine security, compliance, as well as a comprehensive list comprising of known attack vectors and pitfalls.
DaoCoin has in the past few months established a network of AML/KYC checkpoints that are aimed at improving the legal clearance certification process. Depending on the region where a customer is located, the DaoCoin automatic node switch is based on efficiency, as opposed to centralizations. This means that it is always updating itself, even as the transactions are taking place.
DaoCoin has embarked on a collaboration drive with international commodity traders and multinational retail chains to assist them to come up with their own stablecoins.