Less than two weeks after we reported on XCurrency’s trustless mixing service, the currency’s developers on Wednesday announced plans to form a corporation, sell shares and submit its code to outsider scrutiny to see whether anyone can break through its privacy features.
First, the corporation: XC, Inc.’s formation will allow the currency’s team to participate in the commercial projects necessary to realize its vision of a distributed Web 3.0, which we covered earlier this month.
“[I]n order to do so, XCurrency will need to function as a licensed public entity, and thus will be registered as a closed corporation in the USA and as functionally equivalent entities in other regions of the globe,” developers said in a release.
And as they are forming a corporation, that means there will be shares available for purchase. XCurrency’s team are calling this initial sale an “ITO” (“initial token offering”), which will involve the sale of cryptoequity in the corporation, tokens that will differ from the actual XC currency.
These plans, developers said, are still in the works, and they have reached out to the XC community for ideas about how to pull this off. Here is an outline of their plans so far, as published in the release:
- Since a decentralized exchange has long been on XC’s development plan, it is most likely that XC shares will be made available from within the XC app.
- To maximize access, shares will additionally be made available for purchase at several asset exchanges. To this end, XC lead developer Dan Metcalf has been contracted to review — and, if necessary, improve — the NHZ asset exchange, ensuring its security and reliability.
- During the course of the ITO, holders of XC will be entitled to claim shares in XC Inc. This will not require selling units of currency in exchange for shares; proof of ownership of 10 XC coins will entitle one to own an XC Inc. share.
- As such, XC coins will be equivalent to, and not tradable for, XC Inc. shares. Thus XC’s money supply will not be diluted.
- After the ITO has ended, XC Inc. shares will trade independently of XC coins.
- Owners of currencies other than XC will be able to purchase XC Inc. shares.
None of this is set in stone, however, nor has a date for the ITO been set.
Bitcointalk.org users Triffin brought up some interesting points as to how and where XC, Inc. will incorporate — and how its ITO will be SEC-compliant:
XC Shares might not be "legal' in all jurisdictions ..
Where do you plan to incorporate ??
What structure are you going to use, LLC or other ??
Someone ( Dan? ) might want to contact 'kosmost'
with KARM coin as he recently setup an LLC structure
which was subsequently closed down/dissolved ..
The user representing XC in the thread, synechist, responded that those details are still pending.
“Potentially we have a way of getting around the hurdle you mention,” synechist wrote.
That user later went on to refute any concerns that incorporation could conflict with XC’s open-source platform:
“XC's code will be completely open source. That's part of the appeal of the currency.
In contrast, XC Inc's appeal will stem from its ability to consistently deliver ground-breaking innovations, including lots of apps based on XCurrency.
Better still, XC's platform will allow third parties to develop blockchain 2.0 apps of their own, which of course will also run on XCurrency.”
‘Bullet-Proofing’ the Code
Privacy and anonymity are two of XC’s primary features, and the developers said the team wants to fortify their existing efforts by reaching out to security experts and other third parties to empirically test XC’s privacy features.
The team said it plans on adopting the following course of action to solicit outside security help:
- Appoint security consultants to review XC’s code,
- Commission public reviews from cryptography experts,
- Publish what they have learned as an academic presentation, and
- Create at least one big bounty for anyone who can crack their code.
No word yet as to how big that bounty / those bounties will be.
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