CHEYENNE, Wyo., Sept. 17, 2021 /PRNewswire/ -- American CryptoFed DAO (CryptoFed) filed Form 10 and Form S-1 this week with the United States Securities and Exchange Commission (SEC) to register Locke and Ducat tokens issued on the CryptoFed blockchain, a sisterchain of the energy efficient EOS protocol. While Form S-1 will not become effective until SEC's declaration, Form 10 becomes effective automatically in 60 days subjecting CryptoFed to SEC's periodic reporting requirements and making CryptoFed the first legally recognized DAO in the USA as well as the first public DAO in the world.
"To become a truly decentralized autonomous organization, we intend to widely distribute a percentage of CryptoFed's Locke governance tokens, free of charge, to contributors, including municipalities, merchants, banks, crypto exchanges, and individuals who will participate in the CryptoFed Ducat Economic Zone. The CryptoFed uses the part and parcel of buying and selling between Locke and Ducat to stabilize Ducat through ongoing open market operations similar to those of the Fed", said Marian Orr, CryptoFed CEO.
Ducat, an inflation and deflation protected stable token, is managed to be stable to purchasing power through time. Inflation and deflation is determined and defined by the Personal Consumption Expenditures Price Index published monthly by US Department of Commerce, the same metric used by the Federal Reserve. Similar to the dollar for the Fed, the Ducat is CryptoFed's daily use currency.
Merchants not only pay zero transaction fees to accept Ducat as payment for goods and services, but also receive 1%-4% rewards for every purchase transaction made in Ducat, while consumers receive 5.5% - 12% rewards. All rewards are paid by CryptoFed as a method (fiscal policy) to put Ducat into circulation (not as costs), to directly drive effective demand for generating maximum employment. For holding Ducat, CryptoFed pays 3% - 5% annual interest in Ducat as a method (monetary policy) to adjust saving and spending for deterring and curing possible inflation. The range adjustment of rewards and interest will be optimized over time via machine learning with the accumulation of historical data.
"CryptoFed voluntarily assumes the mantle of price stability and maximum employment known collectively as the 'Dual Mandate' for the Fed. Our business model is driven by rewards, interest, and the stability of Ducat currency, not revenue. We are greatly encouraged by both former SEC Chairman Jay Clayton and current SEC Chairman Gary Gensler's prior statements supporting the legality of privately issued currencies," emphasized Orr.
Former Chairman Clayton stated in a CNBC interview on June 6, 2018, "Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin," Furthermore, he said. "That type of currency is not a security."
In his Blockchain and Money MIT class, Fall 2018, Section 2: Money, Ledgers & Bitcoin, Chairman Gensler stated, "I am not aware of any statute, federal or state, that says there's an absolute monopoly on form of money......it is legal to create your own form of money. But you have to comply with all the other laws...." Chairman Gensler also said in Section 19: Primary Markets, ICOs & Venture Capital, Part 1, "… I think there might be a reason why folks want to have native currency, a native token to jumpstart a network and to motivate a network overtime….".
"CryptoFed has innovated two native tokens, Locke and Ducat, 'to jumpstart a network and to motivate a network overtime'. We explain in our Form 10 filing, Item 1 Business, Section 2.9 Locke and Ducat as Utility Tokens, why Locke and Ducat are utility tokens, not securities. However, if SEC classifies Locke and Ducat tokens as securities, our intent is to file Form S-8 after our Form 10 filing takes effect, but before SEC declares our Form S-1 filing effective. Then we will be able to continue granting restricted and untradeable Locke tokens, free of charge, to contributors according to the CryptoFed Equity Incentive Plan as defined by the CryptoFed Constitution." said Orr.
SEC Commissioner Hester Pierce has stated at British Blockchain Association's Conference, published on March 16, 2021 on SEC website, the SEC is "a disclosure regulator, rather than a more interventionist merit regulator." By actively pursuing disclosure through these and subsequent filings, CryptoFed is "Putting Private Token Money into Circulation", the Ducat, proposed by Nobel Laureate F.A. Hayek in his 1976 book, Denationalisation of Money.
For the purposes of full compliance and maximum disclosure, CryptoFed's Form 10 and S-1 filings, Constitution, Ducat Economic Zone Plan and all communications with SEC, including the filing of this press release prior to its publication, can be found at www.americancryptofed.org and https://github.com/americancryptofed
SOURCE American CryptoFed DAO