DCORP — Past, Present and Future
Created through Crowdfunding
Decentralized Corporation (DCORP) was created by a group of blockchain enthusiasts to realize their dream in the blockchain atmosphere, just perfect for the start-up, in early 2017. Our mission is to bring democracy into the elitist venture capital industry through the revolutionary digital blockchain — the decentralized, state-of-the-art, and inherently democratic technology.
DCORP founding team decided on an Initial Coin Offering (ICO) as the best option for funding and developing their project.
Our crowdsale took place in June 2017. After relentless development work and campaigning, DCORP surpassed the minimum funding goal and successfully raised 16,451 ETH, which was worth approximately 5 Million USD at the prevailing price. Contributors exchanged their ETH for DRP, the token representing a share in DCORP during the crowd sale.
Successfully funded, we were ready to begin development of our Venture Capitalism (VC) Platform.
The Tokens and Their Use Cases
Each of the distributed 8,000,000 DRP tokens were meant to be an entitlement to 1 vote on our VC Platform on what will be community envisioned proposals. This is no longer entirely the case, as DRP must be exchanged for DRPU or DRPS, (Continue reading to learn more).
The primary use case remains the same however. Anyone who signs up on the VC Platform can post ideas, submit proposals, and participate in the discussion of projects.
There is a structured process to select and fund projects: :
- First, a submitted proposal is voted on by the community.
- If approved, the proposal is then reviewed for accuracy and flaws.
- A project manager is assigned to the approved proposal.
- The team behind the proposal begins development to bring the project in concrete shape.
We encourage our community to collaborate actively to help fund projects that are blockchain based, decentralized, and transparent by nature. Just like DCORP, the rules behind these projects are described in their immutable Smart Contracts.
Since Smart Contracts operate on the public blockchain, this ensures transparency in all the actions and decisions and allows the community to be a valued asset of DCORP, instead of just an outside entity. In addition to funding projects, Token holders can also vote on the various governance proposals, relating to a number of business activities of the Corporation. These include a slew of Governance Proposals as illustrated in the chart below.
The SEC Report — A Bolt from the Blue
Before development could start in July 2017, the SEC issued a report concluding that DAO tokens are securities; and the offers and sales of digital assets are subject to the requirements of the federal securities laws.
This news came as a bolt from the blue to DCORP and created a panic in the lightly regulated domain of ICOs. The SEC ruling now (in)formally required all ICOs to register their entity with the SEC, if they planned to distribute securities to the citizens of the United States.
This was a difficult development for us at DCORP, as we now had to act hurriedly in order to protect the interests of the US contributors as well as the viability of the corporation. Moreover, our team wanted to provide a fair solution for everyone who had already joined DCORP . It was going to be a difficult task, because the pseudonymous nature of the blockchain made it impossible to determine how many US Citizens had participated in the Initial Coin Offering.
The Solution — Split of DRP into DRPU and DRPS
Following careful deliberation, the DCORP team decided on a solution to comply with legal regulations including the tough SEC ruling.
Due to the immutable nature of the original smart contract of DCORP, no change could be made that would result into DRP not being considered a security by the SEC.
The plan was to create two new tokens out of the original DRP: a utility variant DRPU and a security variant DRPS. Both tokens are distributed in direct exchange for DRP through the use of a Token Changer. The existing DRP tokens would then be made useless by “burning” them after exchanging them for DRPU or DRPS.
In addition to the two new tokens, we further increased compliance by implementing a ‘Know Your Customer’ (KYC) process. In order to obtain one of these two new tokens, existing DRP holders have to verify their geographic location. If a DRP holder is in a jurisdiction which prevents its citizens from investing in securities, they are only be able to exchange their DRP for DRPU, the utility variant. The security variant DRPS is only available to citizens of countries that have no such regulation.
As DCORP prides itself on being democratic and transparent, the final approval of this proposed solution was sought from the DCORP community through a vote — the first and final vote utilized only through the original DRP Token. The community voted in favor of the solution and allowed DRPU and DRPS to come into existence in place of the DRP.
The Action Ahead
After surmounting this stumbling block, we have again focused our efforts to create the VC platform and have already released a BETA version of the website.
DCORP has achieved an important and exciting milestone! DCORP is now registered as a Legal B.V. Corporation. This is a huge leap forward for DCORP, and everyone’s patience and participation is continuously appreciated.
DCORP now invites anyone who currently holds DRP to register on the platform, and exchange the existing DRP into either DRPU or DRPS. We are not in a position to recommend one or the other, but we urge all existing DRP holders to do their due diligence on the benefits of both tokens, taking into consideration their individual circumstances, personal preferences, citizenship status, and applicable regulations in their countries.
There is still a lot of development and action to take place, and they are moving ahead at full pace with support of the entire DCORP community.
While it is a difficult process to obtain premium listings on digital exchanges, DCORP would like to remind everyone DRPU is listed on a tier one Exchange Currently — HitBTC. We are aiming to achieve more listings in the future, but currently efforts have shifted to development to deliver our community the best product possible.
[DCORP currently has a group of Alpha Testers who are going to be testing out a new feature we will be unveiling soon] Share, Clap, and follow us on Medium!.
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