Choice Coin DAN is a decentralized autonomous network, choice software platform, and R&D hub that uses the Choice Coin cryptocurrency to power its software systems. The goal for this project is to create a decentralized compliance mechanism for digital assets on Algorand.
One of the key features of governance software infrastructure currently missing from solutions on Algorand is compliance. As such, this grant will be for a web application and open source software for Choice Coin compliance software, which will be available to the Algorand network to help assist in the compliance process.
i already see a github which is about choice coin compliance, what exactly is this proposal about then? and honestly dont understand in what your compliance solution is about, we will plug in a token and it will say if its a security?
The proposal is for a working compliance application on Algorand. Essentially, users will be able to adjust and experiment with variables that help determine the probability a certain asset would be considered a security. So anyone, including developers, investors, or other stakeholders, can get a better understanding for whether a specific asset would be considered security. Ideally, projects would be able to work with the application before launching as well, to help reduce the odds an asset would be considered a security if they so choose.
Iām hoping to expand the application more to provide a more comprehensive solution over time and may also include commodities compliance as well.
Timely issue youāre approaching. It sounds like a useful project. What parameters are you using to define if a project is compliant or not? Iād be concerned if the platform said that a project was compliant, and the SEC disagreed. Maybe Iām misunderstanding and the platform only guides new projects towards compliance and doesnāt āstampā it as āin complianceā or āout of complianceā?
Will this only consider SEC guidelines? Or will it include international commissions as well?
But, the short of it is that I broke down a bunch of data to generate parameters that the SEC considers in line with the Howey Test.
To your point regarding if the SEC disagrees. This would only be a statistical tool used as a guidepost and would not be a final or formal legal opinion. Similar to the way the IRS may disagree with how TurboTax handles someoneās taxes, the system isnāt perfect but intends to make compliance easier for small businesses and projects at the outset.
Iād like to give a stamp eventually, but for now it would only be guidance. Additionally, for this version it would only be SEC guidelines, but I would really like to expand the scope over time. Thanks for your feedback.
Thanks for the breakdown and sending your resources along, I will give them a look.
I think the TurboTax example is very potent, and adds some clarity to the level of liability your platform holds. I like the direction youāre heading in and the growth potential you discussed.