DaoCoin Infrastructure Promotes Stablecoin Transparency

DaoCoin, the stablecoin issuance infrastructure, has disclosed its plan to open stablecoin issuance framework to all interested and qualified partners. DaoCoin’s infrastructure targets cryptocurrencies that have fiat currency backing. Indeed, the technology encompasses a lot of components. On the other hand, a stablecoin is a cryptocurrency that has the backing of a real world asset. These real world assets are usually fiat currency and gold.

Components of DaoCoin Stablecoin Issuance Infrastructure

• A network of fund management nodes which comprise trusted third-party companies
• A blockchain-based KYC/AML framework with regulatory support
• Real-time API with auditing mechanism and token-fund-matching disclosure
• A set of customizable, streamlined widgets for issuance and redemption of virtual currency with fiat-backing

The Benefits of DaoCoin Infrastructure

Before looking at the benefits that the infrastructure delivers, it is important to know how this infrastructure works. With the open stablecoin issuance infrastructure, a qualified third-party can issue its own stablecoin. Note that DaoCoin itself is not a stablecoin, but it offers the infrastructure to mint stablecoins. Interestingly enough, the infrastructure has the capacity to produce a stablecoin that guarantees efficiency and transparency. Indeed, existing stablecoins have efficiency and transparency issues, which are challenges that the infrastructure addresses. Note that USDT and Dai are stablecoins from DaoCoin.

Addressing Transparency and Efficiency

To address the issues of transparency and efficiency, DaoCoin employs a certain strategy. Third-party trusted firms hold the funds all over the world. Also, auditing companies audit it every month. The infrastructure applies this trust mechanism to ensure that community operation and reserve management remain independent. On the other hand, prestigious companies manage and ensure the security of the reserves. With monthly reports published, they ensure that openness and transparency of asset management are a top priority.

In addition, professional third-party firms audit token generation contracts. Apart from the audit of the token generation contracts, they also audit smart contracts. To this end, they make a checklist of smart contract comprising security, compliance, known pitfalls, and attack vectors. DaoCoin has global AML (Anti-Money Laundering) checkpoints and fund-processing pipelines, which improve the flow of funds and global clearance efficiency. Also, with its delegated proof-of-stake protocol, the infrastructure allows KYC/AML cleared partners to redeem or cash in, in real time.         

Architecture of the Infrastructure

Interestingly, this is the foremost community-oriented issuance framework. The infrastructure issues its own ERC-20 compliant token called DaoCoin Power (DCP). With DCP, the holders can vote for delegates as well as get some discounts when the need arises. In the form of DCP, the infrastructure also repays fees used for minting and token redemption. The firm is in talks with international commodity traders and multinational retail chains. Indeed, DaoCoin aims to convince them to key into the stablecoin issuance infrastructure.