Strong Foundations: the Corporate Structure of USAT Inc.
How running an ICO let USAT Inc. break free of the traditional toxic corporate structure.
“You’ve got to spend money to make money” is an old adage no doubt familiar to anyone in business. Starting or expanding a business takes a lot of time and resources (i.e. money). Traditionally, the way to get this crucial operational capital is by taking on shareholders. However, an unfortunate byproduct of this is that the organisation is forever beholden to these shareholders, whose primary concern is their own financial reward. Problems arise when the short-term gain of shareholders comes at the cost of the long-term success of the organisation, along with the benefit to its other stakeholders, such as customers, suppliers, and employees. This can happen because shareholders with voting rights can basically hold a CEO hostage to their self-interest. When a situation is created where a CEO is forced to put the short-term good of shareholders above the good of the organisation, this forms what’s known as a toxic corporate structure.
As USAT Inc. deals with highly sensitive information (handling patents and other intellectual property), has strong, humanitarian commitments, and has pledged to protect the rights of intellectual property holders. Thus, it absolutely had to avoid the trap of a toxic corporate structure if it was to thrive and carry out its mission. The trust placed in USAT Inc. by its scientific and business partners is absolute and so USAT Inc. must always honour that trust by dealing ethically with all parties and by acting in the best interests of its mission and key stakeholders: that is, its partners, token holders, and customers.
If shareholders are the problem, the solution is to not have any. This was easy enough for USAT Inc., because it owns all its key assets and has all the necessary partnerships needed to succeed. Basically, USAT Inc. can self-fund its own operations via technology sales through its established connections. However, this route isn’t the fastest and USAT Inc. is an organisation that likes to move quickly, so that it can capitalise on opportunities as they appear.
So, the question remained: how to raise capital quickly without resorting to shareholders? For USAT Inc., holding an ICO was the obvious answer.
The ICO is the perfect vehicle for USAT Inc.: blockchain technology is a fundamental part of the platform and the ICO community can easily understand the value and importance of USAT Inc.’s mission to decentralise the development and commercialisation of ethical intellectual property. The ICO also brings USAT Inc. into direct contact with its key stakeholders and lets them get involved early on.
Fitting perfectly into this structure is the other crypto in use on the USAT Inc. platform: DMACs. DMAC stands for Digitally Mined Asset/Commodity, which function in a way that’s similar to bond and appreciate in value via proof of work/proof of stake mining. DMACs are offered as an investment vehicle, allowing people to support projects they care about whilst benefiting from them.
All of this is achieved without USAT Inc. sacrificing its autonomy to shareholders. No shareholders also means no payouts to shareholders, so all funds and profits are put into carrying out the mission of USAT Inc., expanding the capacity of the platform, and managing its tokenomics.
This makes USAT Inc. free to direct its priorities towards maximising value for all stakeholders, and to choose projects on the merit of their long-term value and positive impact, instead of for the short-term benefit of a select few. USAT Inc.’s corporate structure ensures it is always free to stay true to its mission and values.
In the words of our CEO, we can “dictate our own destiny”.
To learn more about USAT Inc.’s current projects, services, or to learn more about the ICO, visit: usat.io
For more information about DMACs, see this article: https://medium.com/@usatinc101/a-closer-look-at-dmacs-b5ba3cd15408?source=linkShare-18f48c42e279-1533244187
USAT Inc. is an Australian organisation that utilises blockchain technology to decentralise the intellectual property process and provide patent holders with greater security. Through our platform we fund, develop, and commercialise intellectual property for the benefit of innovators, token holders, and the planet. We ensure innovators are supported and we provide token holders with strong growth opportunities.
For more information about our ICO or our ultra-affordable and clean renewable energy project, solar-wind technology, visit https://usat.io