The first decentralized autonomous organization (DAO) to be legally recognized in the U.S. has filed with the securities regulator as it seeks authorization for two new tokens. American CryptoFed DAO LLC filed form S-1 with the Securities and Exchange Commission (SEC) to register Locke and Ducat tokens.<\/p>\n
CryptoFed\u00a0made headlines\u00a0in early July when it became the first DAO to get legal recognition in the U.S., aided by the DAO bill that\u00a0the digital currency-friendly state of Wyoming\u00a0passed in March this year. The DAO gained its legal registration in 11 minutes after the DAO bill took effect on July 1.<\/p>\n
CryptoFed is seeking to use the two tokens, Ducat and Locke. It indicates in its filing that it will not be selling any of the tokens in the offering. Rather, it wants to enable the secondary market for both to exist, refundable auctions of Locke to initiate, and the sale of Ducat tokens at a higher market value than the original purchase price direct from the DAO.<\/p>\n
CryptoFed is registering both tokens as utility tokens, not securities, with Ducat as an inflation and deflation protected stable token with unlimited issuance, and Locke as the governance token whose maximum supply is capped at 10 trillion.\u00a0<\/p>\n
Marian Orr, the CryptoFed CEO who previously served as the mayor of Cheyenne, Wyoming, explained, \u201cTo become a truly decentralised autonomous organisation, 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.\u201d<\/p>\n
CryptoFed, on its part, will act as the central bank in the ecosystem, managing the\u00a0token\u00a0supply to control inflation.\u00a0<\/p>\n
\u201cCryptoFed will conduct open-market operations on a daily basis which will change the supply of Locke and Ducat tokens over time. Locke and Ducat transactions will be fully transparent on the CryptoFed blockchain,\u201d the company claimed in its\u00a0filing.<\/p>\n
As it awaits the SEC approval, CryptoFed will allocate its Locke governance tokens to contributors in its Ducat Economic Zone, it stated in its filing.\u00a0<\/p>\n
\u201cIn the interim, Form S-8 filing will enable CryptoFed to grant restricted and untradeable Locke tokens to more than 500 persons. For clarity, all Locke and Ducat tokens will remain restricted, untradeable and non-transferable until the effectiveness of the Form S-1 filing is confirmed by the SEC,\u201d it stated.<\/p>\n
Meanwhile, on Bitcoin SV,\u00a0Gorilla DAO\u00a0is showing the world just what\u2019s possible with a DAO on Bitcoin. The latest milestone is the debut of the GorillaPool, a truly distributed mining pool\u00a0that mined its first block\u00a0on the BSV blockchain earlier this month. The mining pool is growing quickly and already controls 3% of the total BSV hash power.\u00a0<\/p>\n
Watch: CoinGeek Zurich panel, Tokenizing Assets on BSV<\/p>\n