Chapter 1 — What is DPIN in RWA?
As we delve deeper into the captivating world of Real World Assets (RWA), the prominence of these RWA in Web3 continues to grow. The significance of understanding this landscape becomes even more apparent, with the assurance that the knowledge acquired will be invaluable in 2024.
This serves as the driving force behind the carefully curated panel, consisting of RWA experts who bring forth their wealth of insights and alpha to the stage. Learning from the likes of @ScottFooMusic, @IsleMarauder, and @ChrisThien931 has become a routine for the host, @Ice_nfts.
Each conversation with these industry experts unveils innovative ideas and tests the boundaries of existing concepts. The dynamic nature of this space makes predicting the future trajectory of RWAs a formidable task, but the stage is set, and the mic is now passed to the representatives from @cdao_io, Chris, and @mcdollar139.
i. RWA in the Entertainment Industry
Chris, with a background spanning a decade in the entertainment industry, brings a unique perspective to the RWA landscape. His expertise in cryptocurrencies and trading over the last three years has paved the way for the creation of something new within the Web3 industry.
Introducing the CDAO RWA project, Chris is set to share exciting insights into the world of RWAs, further enriching the audience's understanding of this evolving space.
ii. Navigating the Crypto Journey
McDolla, having embarked on his crypto journey as an investor and trader, adds another layer to the conversation. His experience witnessing tokens fluctuate from single to triple digits, and even plummeting to a few euros, positions him as a seasoned participant in the crypto space.
Aligning with Chris in the entertainment industry, McDolla sheds light on their endeavor to tokenize projects into RWA initiatives within the Web2 landscape.
Iii. Passing the Baton
As Ice passes the mic to the representatives from CDAO, he expresses his honor to be sharing the stage with RWA legends like Chris and McDolla. The introduction of Isle, the RWA expert for the Syndicates Network, adds another dimension to the panel.
Acknowledging Isle's prowess in both RWA and Marauder tech support, Ice emphasizes the collective learning experience that unfolds whenever these industry leaders convene.
iv. Sterling's Commitment to Web3
Sterling makes a commitment evident by rescheduling a meeting to join the discussion. His dedication to the Web3 industry and continuous learning is evident, setting the stage for a valuable contribution to the ongoing dialogue about RWAs.
v. Following the Money in RWAs and DPIN
Scott, a prominent figure in the music industry, emphasizes the need for continuous work and dedication. Despite the holiday season, his focus remains unwavering, aligning with the ethos of the Web3 community.
His commitment to covering all aspects of machine RWAs and DPIN, also known as Decentralized Physical Infrastructure, despite potential engagement concerns, underscores the importance of following the money.
a. Unveiling DPIN: A Teaser for the Future
Scott hints at the intertwined nature of RWAs and DPIN, sparking curiosity within the audience. The discussion transitions to Scott's responsibility in covering the expansive landscape of DPIN, which has seen substantial volume, signaling a compelling shift in the industry.
To comprehend DPIN, it's essential to grasp the concept of IOT, which stands for the Internet of Things. Scott drew parallels with common household devices, such as Apple watches and Amazon Bluetooth devices, that connect to the internet.
However, he introduced a paradigm shift—imagining these devices not merely as information conduits but as active participants capable of settling transactions and executing tasks.
Taking it a step further, Scott introduced the term "economy of things." This concept envisions IOT devices forming an actual economy, rewarding individuals for the data they contribute.
An illustrative example was presented through Wingbits, a project building on the Peak Network. Traditionally, flight data collected by enthusiasts went uncompensated, but now, with DPIN, individuals contributing such data can receive rewards, transforming a hobby into a valuable endeavor.
b. Real-World Examples
Scott delved into real-world scenarios where DPIN could revolutionize existing processes. Map metrics, for instance, could incentivize individuals to contribute their travel data, providing an alternative to centralized platforms like Google Maps.
This shift from data extraction without compensation to a user-centric approach aligns with the ethos of decentralization. The potential applications of DPIN extend beyond hobbies to diverse sectors.
Scott highlighted the opportunity for individuals in various industries, from healthcare to agriculture, to actively participate and be rewarded for their contributions. He introduced the idea of fractionalizing tasks within a sector, exemplified by smart mining and the utilization of drones for agriculture checks.
c. DPIN Adoption
The enthusiasm for DPIN isn't confined to speculative assets or crypto enthusiasts. Scott emphasized its potential to appeal to a broader audience, citing examples of individuals in unconventional sectors finding value and engagement.
The onboarding process becomes seamless, with DPIN offering a tangible connection to real-world activities without delving into complex blockchain terminology.
d. Industry Giants Embrace DPIN
Dispelling any notion of DPIN as a mere trend or speculation, Scott highlighted the involvement of industry giants. Companies like Vodafone, ANZ (Australia and New Zealand Banking Group), and Swift have entered the DPIN arena, signifying a shift from speculation to active participation.
The recent influx of established entities, including Airbus and Bosch, further solidifies the industry's commitment to the DPIN ecosystem.
e. Bridging the Gap Between RWAs and DPIN
As the conversation continued, Isle joined the discussion, bringing insights into the intersection of RWAs and DPIN. While underlining the potential of DPIN to onboard users seamlessly, he drew parallels with the financial realm.
Isle envisioned blockchain technology becoming the underpinning layer for the entire financial infrastructure, with tokenization becoming the norm. Isle shared his ambitious venture—a newsletter dedicated to dissecting individual protocols in the real-world assets space.
Recognizing the complexity of many white papers in this domain, his mission is to demystify and simplify these protocols for a broader audience. Isle’s newsletter aims to provide weekly insights into different RWA protocols, ensuring that even those unfamiliar with the intricacies of blockchain can comprehend the significance of these projects.
The intention is clear: break down the technical jargon and offer a simplified narrative that focuses on how these protocols benefit end-users. The newsletter doesn't stop at simplification; it extends its reach into crucial aspects like tokenomics, market positioning, and the feasibility of the underlying ideas.
Isle recognizes that readers, especially the end-user and consumer, are primarily interested in how these protocols can translate into tangible benefits and opportunities for them.
Isle's initial newsletter installment delved into the intriguing case of Block Apps, a company that entered the RWA space with a unique perspective. Established in 2015, Block Apps prioritized privacy, addressing a significant concern within the blockchain ecosystem.
The challenge of maintaining confidentiality while trading on public blockchains like Ethereum prompted Block Apps to create its own blockchain. Block Apps' solution involved the creation of a public mainnet attached to various private subnets, akin to the architecture of Avalanche.
This innovative approach allowed users to tokenize their assets while preserving privacy. The article provides an in-depth exploration of Block Apps' platform, including its account creation process, adherence to AML and KYC regulations, and the trading opportunities it offers.
For those intrigued by Isle's meticulous breakdown of Block Apps and eager to explore upcoming protocols, his newsletter serves as a valuable resource. With the first installment already released and a promise of more to come, readers can gain a deeper understanding of the evolving RWA landscape.
Check out Isle's newsletter, available through a link in his profile, and stay informed about the fascinating world of real-world asset protocols.
vi. Closing Remarks: Empowering the Audience through Knowledge
As we conclude this recap, it's evident that the world of RWAs and DPIN is dynamic, innovative, and filled with opportunities.
From Scott's insights into DPIN revolutionizing industries to Isle's commitment to simplifying RWA protocols, each perspective contributes to the overarching narrative of Web3's transformative potential.
In the ever-expanding of blockchain and decentralized technologies, knowledge becomes the key to unlocking opportunities.
Whether you're a seasoned enthusiast or a curious newcomer, staying informed about these developments ensures that you are not merely a spectator but an active participant in the future of connectivity and decentralized finance.
Chapter 2 — Transparency and Traceability
The space takes an unexpected turn as Ice hands the mic over to @WhizPill, sparking a conversation about their New Year's experiences and a surprising revelation from Whiz about "touching glass."
i. From Frustration to Success
Whiz shares his initiation into the Web3 space, driven by frustration at the lack of resources on cutting-edge topics. His determination led him to document and analyze the intersection of arts, culture, and tech.
Astonishingly, his efforts not only garnered subscribers but turned into a source of income, with over 100 hours of audio content and 52 articles.
Ii. The Fruits of Unplugging
@ice_nfts commends Whiz on his prolific output and delves into the challenges faced as a content creator navigating the complexities of Web3.
Whiz acknowledges the steep learning curve but expresses hope that creators can implement Web3 technologies to enhance their content.
iii. Decoding RWAs with Whiz: A Writer's Perspective
Ice turns the conversation towards RWAs, questioning Whiz about his perspective as a writer.
Whiz confesses that this side of Web3 often flies over his head, highlighting the frustration associated with learning new, intricate concepts.
iv. Legacy Systems and Breaking Barriers
Scott interjects, sharing insights on legacy systems across industries and the challenge of breaking them. He emphasizes the rewards of overcoming these challenges and encourages collaboration among creators from different backgrounds.
Scott also provides a glimpse into his own journey in applying Web3 concepts to the music industry.
The conversation takes an intriguing turn as Scott discusses his efforts in collaborating with a major label to create a new aggregator, challenging the flawed system of speculative gambles in the music industry.
He emphasizes the need for a more reliable system for independent artists to navigate the complexities of deals and collaborations. The discussion wraps up with an invitation for collaboration.
Scott stresses the importance of learning together in this new space, irrespective of one's background, and highlights the potential for individuals from diverse industries to contribute valuable insights.
v. Networking while on Spaces
Ice expresses enthusiasm for the networking potential within spaces like the one they're currently in, emphasizing the bullish nature of such interactions.
The sentiment echoes the collaborative spirit of the Web3 community.
vi. Transparency and Traceability in Web3
The discussion shifts to Scott's insights on transparency and traceability in Web3, pointing out the delicate balance between having enough information and avoiding information overload.
Ice underscores the importance of illustrating this distinction concretely to ensure the responsible evolution of decentralized technologies.
a. Legacy Systems: The Challenge of Change
Ice reflects on the challenge of altering legacy systems, acknowledging the resistance to change when existing systems seem to work perfectly.
Using the music industry as an example, he highlights the intricate steps involved in transforming legacy systems, emphasizing the necessity to align demand, content, and delivery methods.
b. Critical Steps in Transformation: From Demand to Delivery
He stresses that altering the demand for a product, such as music, is the initial step in reshaping the system.
The subsequent changes in content and delivery methods must align with this demand shift. The complexity of these steps and the cascading effects of any missteps underline the difficulty of the transformation process.
vii. Blockchain's Role in Legacy Systems
Isle takes the mic, delving into the role of blockchain in disrupting legacy systems. He discusses the importance of decentralization in maintaining the continuous operation of systems, providing security and transparency.
Isle touches on the potential tokenization of the stock market and the transformative impact of blockchain on traditional finance.
a. Interoperability and Auditable Systems
Isle highlights the benefits of blockchain in making systems interoperable and auditable, reducing the likelihood of fund misallocation and fraud.
He introduces the concept of private subnets within blockchain infrastructure and expresses optimism about the coexistence of centralized mini-chains and a broader decentralized chain.
b. Web3 Music and the Future
The conversation circles back to the music industry, with Isle expressing optimism about the future of Web3 Music.
He acknowledges the flaws in the current music industry model, which primarily benefits giant corporations, and envisions a space for Web3 innovations in asset verification, finance, and decentralized finance (DeFi).
viii. Closing Remarks
Ice takes the opportunity to reset the room and redirect the conversation to the topic of RWAs, specifically addressing asset verification.
The ongoing exploration of RWAs promises further insights into their role in the evolving Web3 landscape.
As the conversation unfolds, the participants are poised to delve deeper into the intricacies of Web3 technologies, exploring their potential to reshape various industries.
Chapter 3 — Decentralized Asset Verification: Part 1
In the ever-evolving landscape of decentralized finance (DeFi), the verification of assets stands out as a critical challenge.
As our panelists delve into the intricacies of this topic, @IsleMarauder takes the spotlight to share insights into a protocol akin to block apps and Colony, both renowned for their asset management capabilities.
This protocol, however, takes a decentralized approach, eliminating central intermediaries in the verification process.
i. The Enigma of Decentralized Verification
Isle's ongoing research raises intriguing questions about the mechanics of this decentralized protocol. The comparison to @thecolonyxyz, where a third-party vault verifies items like Pokemon cards, sheds light on the complexity of creating a trustless system.
The verification involves sending an asset to a vault, obtaining an NFT as a redemption token, and allowing seamless, trustworthy trading. However, Isle hints at the necessity of central third parties for effective verification, leaving the door open for further exploration.
ii. Trusting the Untrusted
@ice_nfts steers the conversation towards the inherent challenge of trusting central third parties. The need for multiple entities in the verification process arises, and Isle acknowledges the tumbleweed effect – one problem leading to another.
The trust in third-party verification systems becomes a paramount concern, raising questions about potential fraud and the role of insurance in safeguarding transactions.
a. Legal Boundaries and Defaults
Scott provides a unique perspective by highlighting the absence of legal boundaries in DeFi transactions. He shares a cautionary tale about defaults on physical-backed assets and the detrimental impact on the space's reputation.
Scott emphasizes the importance of finding a balance between decentralized principles and establishing some form of legal recourse to ensure accountability in transactions.
b. Bridging the Legal Gap
Ice prompts Scott to consider a Web3 equivalent of the legal intermediaries seen in traditional transactions.
Scott introduces the concept of "Web3 RWA Escrow," an imaginative term that hints at the potential innovation needed to bridge the legal gap in decentralized transactions.
The conversation touches upon the need for decentralized legal experts or entities to ensure the security of high-value transactions.
c. Opening a Runway of Web3
Scott's reflection on the vast possibilities within the Web3 space underscores the limitless opportunities for innovative solutions.
He applauds Ice's suggestion, emphasizing the importance of identifying real problems and integrating blockchain solutions organically.
The potential for a Web3 legal infrastructure and escrow services emerges as a thought-provoking avenue for further exploration and development.
iii. RWAs: The Cake Analogy
As our panel discussion on decentralized asset verification nears its conclusion, Isle and @ScottFooMusic share further insights that add layers to the complex landscape of DeFi.
The dialogue takes an interesting turn as Isle introduces a cake analogy to shed light on the current state of Real World Assets (RWAs) in the DeFi space.
Isle likens RWAs to a cake, portraying them as a blend of centralized entities forming the cake's base, with decentralization and transparency acting as sprinkles or condiments.
In this analogy, Isle suggests that, while decentralization might eventually become the cake itself, the current reality involves central entities managing key aspects of the system.
Transparency and decentralization, in their current form, serve as additional layers, highlighting the delicate balance required in the evolving landscape of decentralized finance.
a. Centralization, Transparency, and Accountability
Scott aligns with Isle's analogy, emphasizing the need for accountability in the current state of affairs. He envisions a future where KYC (Know Your Customer) and AML (Anti-Money Laundering) processes could be integrated into blockchain protocols like Cantor.
This, according to Scott, could serve as a centralized safety step on top of existing security measures. The discussion expands into the potential emergence of new protocols, adding layers of complexity to the ever-growing possibilities within the DeFi space.
b. Streamlining the Verification Process
The conversation takes a practical turn as Scott discusses the need for more streamlined services within the DeFi space. He envisions specialized entities that focus on specific asset categories, such as watches or real estate.
This streamlining, according to Scott, could enhance the efficiency of the verification process, bringing more clarity and reliability to the decentralized asset management ecosystem.
iv. Closing Remarks: Web3 Escrow and Enforcement Mechanisms
The dialogue concludes with a contemplation on Web3 escrow services and trust accounts. The critical question arises: who or what will enforce these mechanisms in case of discrepancies?
Isle, Scott, and Ice delve into the possibilities, considering entities, protocols, or a combination of both as potential enforcers. The uncertainty surrounding these enforcement mechanisms reflects the ongoing exploration and experimentation within the DeFi space.
As the panelists express their thoughts on the future, it becomes evident that the DeFi landscape is a dynamic tapestry of challenges and potential solutions. The interplay between centralization, transparency, and accountability continues to shape the narrative of decentralized asset verification.
Chapter 4 —Chain Link: A Cornerstone for Secure and Interoperable RWAs
In a recent online discussion, participants delved into the complexities surrounding the integration of real-world assets (RWAs) into the decentralized world of Web3.
The conversation touched upon critical issues, such as asset security, blockchain protocols, and the role of centralized entities in facilitating transactions.
In this recap, we'll explore the key insights shared during the conversation and analyze potential solutions to the challenges posed by RWAs in the rapidly evolving landscape of Web3.
i. Understanding the Concerns
@auntiepaca initiated the discussion by expressing concerns about the security of digital wallets and the potential risks associated with mainstream adoption of Web3.
The fear of losing assets tied to digital wallets, especially in scenarios like real estate transactions, where the stakes are high, emerged as a common worry among the participants.
ii. Chain Link's Role in Addressing Concerns
@ScottFooMusic highlighted the significance of Chain Link's CCIP (Cross-Chain Interoperability Protocol) in addressing security and settlement issues related to RWAs.
He emphasized that despite concerns, RWAs are already mainstream, with major financial institutions like Swift, Vodafone, and others actively participating. Scott encouraged participants to explore Chain Link CCIP for a comprehensive understanding of collateral settlements and cross-chain operations.
a. Tokenization of Real Estate and Chain Link's Importance
@IsleMarauder expanded on Scott's insights, stressing the integral role of Chain Link in the tokenization of real estate. He emphasized the necessity of owning Chain Link for those interested in RWAs, describing it as a protocol that is essential for both RWAs and blockchain in general.
Isle sees Chain Link as a long-term player in the space, asserting its importance in ensuring the security and interoperability of assets.
b. Dispute Resolution and Centralized Intermediaries
Isle raised an important point about the need for centralized entities to manage disputes in the event of a wallet being drained. He explained that in cases of asset loss, a dispute resolver, akin to a third-party court system, would play a vital role in verifying the legitimacy of claims.
Dispute resolution emerged as a key concern, with the need for a reliable central authority to handle such situations effectively.
iii. Verification of Real-World Assets
@mcdollar139 addressed the challenges associated with verifying real-world assets, emphasizing the need for intermediaries to validate and facilitate transactions.
He highlighted the creation of job opportunities and industries in the space, suggesting that intermediaries could play a crucial role in ensuring genuine and timely transactions.
iv. The Role of Parcel in Real Estate Speculation
Scott brought attention to Parcel, a platform enabling speculation on rising and falling real estate markets globally. He described it as a decentralized trading platform for real estate, allowing users to bet on market trends.
Parcel provides a unique opportunity for users to engage in real estate markets without significant financial barriers.
a. Lowering Barriers to Real Estate Investment
The conversation circled back to the accessibility of real estate investment, with @ice_nfts expressing enthusiasm for platforms like Parcel.
He acknowledged the challenges of hefty down payments for traditional mortgages and praised platforms that lower the barrier to entry.
Ice sees these platforms as not only investment opportunities but also as educational tools, encouraging users to learn more about real estate.
v. Closing Remarks
The dialogue surrounding RWAs in Web3 highlighted both challenges and potential solutions.
From concerns about security and dispute resolution to the role of platforms like Parcel in making real estate investment more accessible, the conversation showcased the multifaceted nature of integrating real-world assets into decentralized systems.
As the Web3 space continues to evolve, addressing these challenges will be crucial in unlocking the full potential of blockchain technology in real-world applications.
Chapter 5 — Decentralized Asset Verification: Part 2 (3m 10s)
Continuing the discussion from Chapter 3, experts in the blockchain space delved into the challenges surrounding the verification of tokenized assets in the decentralized finance (DeFi) ecosystem.
The conversation, led by @ice_nfts and featuring industry professionals such as @ChrisThien931 and @mcdollar139, highlighted the complexities associated with bringing real-world assets onto blockchain platforms.
This recap aims to provide a detailed overview of the key insights and perspectives shared during this insightful discussion.
i. The Verification Dilemma
The conversation kicked off with Ice playfully prodding Chris about his presence in the discussion.
After a brief absence, Chris reappeared, and the focus shifted to the challenges of verifying tokenized assets, especially in the context of real estate, precious metals, and collectibles.
a. Chris’ Perspective on Asset Verification
Chris, representing a team (@cdao_io) actively involved in building decentralized applications, pondered over the hurdles faced in the verification process.
Acknowledging the absence of a robust standard, he emphasized the need for trustworthy entities with expertise to perform asset assessments.
The discussion highlighted the power struggle inherent in decentralized verification, drawing parallels between traditional banking assessments and the requirements of web3 platforms.
b. The Uphill Journey of Tokenized Assets
As Ice elaborated on the difficulties of verifying tokenized assets, such as real estate or a Pokémon card, Chris expressed that the current standards were insufficient.
He suggested the necessity for external parties to audit and validate assets, establishing credibility in the decentralized space.
Despite recognizing the potential of tokenization trends, Chris admitted that the journey toward effective verification was still in its early stages.
c. Mcdolla’s Perspective
Mcdolla, seizing the opportunity to contribute, saw the challenges as an avenue for new job opportunities.
Drawing parallels with auditors ensuring shareholder protection, he envisioned a role for intermediaries facilitating asset transactions and verification.
The importance of accountability in transactions was emphasized, highlighting the need for trustworthy entities in the decentralized landscape.
d. Jana’s Perspective
@TheJanaNFT, having recently joined the discussion, conveyed her enthusiasm for decentralized finance and RWA (Real World Assets).
She highlighted the inclusivity that RWA brings, allowing even ordinary individuals to participate in opportunities previously inaccessible.
Her mention of a project involving the tokenization of physical mining piqued the interest of the participants.
ii. RWA Enthusiasm and Future Prospects
Jana's excitement over a project involving the tokenization of mining operations resonated with the audience.
She described how individuals could contribute funds to support the entire mining process, from extraction to industry.
The prospect of democratizing investments in tangible assets like minerals intrigued the participants, showcasing the potential of RWA in creating new opportunities.
@auntiepaca, captivated by the idea of mining valuable gems, expressed a keen interest in participating in such projects.
Her enthusiasm added a lighthearted touch to the discussion, with Ice jokingly suggesting a division of the spoils between diamonds and other stones.
iii. Closing Remarks
The discussion provided a comprehensive view of the challenges and opportunities associated with decentralized asset verification in the evolving landscape of web3 and DeFi.
As the industry continues to develop, the need for standardized verification processes, trustworthy intermediaries, and innovative solutions becomes increasingly evident.
The enthusiastic responses from participants like Jana and Auntie underscore the growing excitement and interest in the potential of RWA within the decentralized finance ecosystem.
As technology advances and standards emerge, the path to seamless asset verification on blockchain platforms may become clearer, opening doors to new possibilities in decentralized finance.
Chapter 6 — Decentralized Gaming with CDAO: Redefining the Casino Experience in Web3
In the last segment of the space, the spotlight shifted from the captivating conversation with @mcdollar139 and @ChrisThien931 to the dynamic team behind @cdao_io.
@ice_nfts, the host, turned the microphone over to Chris from CDAO, allowing the audience to gain insights into the ambitious project bridging the gap between the online and offline gambling industry.
i. A Web3 Casino Project
Chris, representing CDAO, began by providing a succinct overview of their project. CDAO is positioned as a web3 casino venture that seamlessly integrates both online and offline facets of the gambling industry.
Drawing on years of experience in the gaming platform under Web2, CDAO has not only ventured into the online domain but has also established a physical casino in the Philippines, forging partnerships with casinos globally, including those in Korea.
This extensive network of casino experts forms the backbone of CDAO, categorizing it as a Real-World Asset (RWA) project.
ii. RWA in Web3
The decision to bring RWA projects into Web3 is rooted in the unparalleled advantages offered by the global circulation of cryptocurrencies without currency restrictions.
Chris emphasized the distinctive nature of RWA projects, diverging from the typical ventures that often rely on speculative trading and lack substantial utility.
In contrast, CDAO positions itself with a real-world business component. Operating both online and offline, it ensures tangible value for its NFT holders.
Chris articulated that not all businesses are compatible with tokenization in the RWA model, and the focus should be on mutual success and understanding why tokenization is pursued for valuable RWAs.
iii. The Web3 Community and DAO Concept
Chris delved into the expansive nature of the Web3 community, characterizing its growth as exponential. He highlighted the importance of community size and shared values, emphasizing the mutual growth that could ensure long-term success.
With CDAO operating in the entertainment industry, the absence of currency constraints in Web3 opens the doors to invite people to join as 'bankers,' promoting the DAO concept.
The primary goal behind CDAO is to establish a decentralized, community-driven platform redefining the traditional online casino experience. Their vision includes providing a secure, transparent, and rewarding ecosystem for users worldwide, including NFT holders.
iv. NFTs and CDAO: Sharing the Profits
Ice posed a question that shed light on the inclusive nature of CDAO's model.
Chris affirmed that investing in a CDAO NFT allows individuals, even those not inclined towards gambling, to reap the rewards of the team's earnings in the gambling sector.
The NFT holders essentially become virtual shareholders, receiving a portion of the platform's profits.
The elucidation provided by Chris demonstrated the innovative approach CDAO is taking, merging traditional gambling with the decentralized, transparent, and inclusive ethos of Web3.
The conversation didn't end there, as @awisefo raised pertinent (this word means ‘important’) questions about the regulatory landscape and the potential classification of CDAO's model as a security.
The team addressed these concerns, underlining their commitment to compliance and legality.
a. CDAO's Profit Distribution Model
McDolla clarified that CDAO allocates up to 80% of its profits to token holders, who, by owning NFTs, are more akin to holding stakes in the intellectual property (IP) of the project.
This innovative approach positions NFT holders as contributors to the growth of the platform, allowing them to utilize the IP for their businesses.
Furthermore, 40% of the total profits from CDAO's casino operations, both online and offline, are reinvested into the liquidity pool of the MCD coin – the utility token of the platform.
This strategic move aims to unlock the value of the token and foster liquidity, emphasizing that the structure is not a direct representation of equity or debt.
b. Addressing Security Concerns and Regulatory Compliance
In response to Awf's query about government regulations and investor protection committees, the discussion shifted towards the challenge of integrating Web3 projects with the existing legal frameworks.
McDolla clarified that the issues of investor doxing and sharing revenue streams with the government are more pertinent to Web2 and traditional business registration processes.
CDAO, operating in Web3, introduces a paradigm shift where decentralized models and blockchain technology offer a different perspective.
While acknowledging the importance of compliance, McDolla hinted that the regulatory landscape might differ for projects rooted in the principles of decentralization.
v. Changing Definitions and Future of Tokenized Securities
@IsleMarauder contributed a thought-provoking perspective, foreseeing a future where tokenized securities become the norm. He emphasized that as governments co-opt blockchain technology, the definition of security might evolve to accommodate tokenized assets.
The coexistence of permissioned and decentralized chains, as seen in projects like Avalanche, may become a common trend.
a. Intersection of Decentralization and Mass Adoption
The conversation then touched on the evolving nature of decentralization in the face of mass adoption and government involvement. Awf expressed concerns about the potential loss of privacy and decentralization as Web3 integrates with traditional systems.
@ScottFooMusic and Isle acknowledged the potential compromises that may arise but highlighted the necessity of adapting to governmental norms for mainstream acceptance.
b. Multi-Chains and Country-Specific Chains
Isle brought up the idea of a future with a reduced number of prominent chains, envisioning a scenario where countries have their own dedicated chains.
The notion of chain factions, reminiscent of alliances in online gaming, became a fascinating metaphor for potential collaborations among countries with their respective blockchain networks.
vi. Closing Remarks
As the space approached its conclusion, the intricate discussions surrounding CDAO, security definitions, and the future of decentralization left the audience with a multitude of perspectives and questions.
The dynamic dialogue among industry experts hinted at the ongoing evolution of the crypto space and the challenges and opportunities that lie ahead.
The complex interplay between regulatory frameworks, decentralized principles, and the drive for mass adoption underscores the need for ongoing conversations and collaborative efforts within the crypto community.
As Web3 continues to unfold, projects like CDAO stand at the forefront, not only redefining the online casino experience but also challenging traditional notions of ownership and security in the blockchain era.
Chapter 7 — Author's Notes
Honestly, throughout the entire space, I paid attention while the panelist spoke. I sat back, doing my best to grasp the intriguing topic, which is not often discussed in web3 spaces.
Thanks to Ice for sharing these industry experts with the network. Towards the end, I joined and asked a few questions to the CDAO team. They mentioned that these NFTs wouldn't translate to equity, and holders wouldn't have the right to influence the business direction.
At that moment, I was confused, but after reviewing the recordings, it became clearer. The realm they're exploring is new and unregulated, making it highly interesting. If executed successfully, it could be significant for the web3 industry.
While tokenizing assets isn't illegal, profit sharing faces strict regulations in some western countries. In Asia, it's less regulated or even legal, but as a business becomes profitable, legal and financial complications may arise with the government. Taxation comes into play—does paying tokenized asset holders equate to expenses?
This is intriguing; if considered an expense, businesses might find a loophole to minimize taxes. It may sound like gibberish because I don't fully understand how it works. What CDAO is building, I approve.
For those who missed the session, I hope you enjoyed this recap.
