What is a company? The short end of this is that a company is simply a commercial business venture.
By the global outlook today, one can clearly observe that our traditional finance market is centralized. From the central banking authorities that issue the fiat currencies that drives our economy to the individual bespoke financial organisations that we interact with each day.
As investors and depositors we pass the control of our assets to various financial organizations like companies and banks in expectations of getting higher profits/returns. The problem with this scenario is that since all the control and funds are centralized so is the risk!
Think about this for a minute, in normal investment schemes you put your trust in financial advisors to advise you on schemes, mutual funds, and share market in exchange for a certain percentage of your return. Your return from the investment might be a lump sum but there is also a certain degree of risk involved as the advisors can also make mistakes or fail to see market risk. So you receive just a fraction of the money from the investment.
Even in the event of the shares market, how many of us directly hold shares of companies? In most cases, we have very little to no say in where our money gets invested and how it is handled by these corporations – meaning there’s a lack of transparency present. All the issues arise because of the centralization of the finance that underpins the global economy, but it is not an open system. Financial organisations these days are bloated teams made up of a hierarchical order of command from low members up to the CEO gobbling tens of thousands of dollars a month in costs. This is not an efficient use of resources and investors are the end losers in this process.
The solution is to decentralize
DeFi is short for Decentralized Finance. Decentralized Finance as a term includes digital assets, protocols, smart contracts, and dApps built on a blockchain. The Ethereum platform is the primary choice for the DeFi application because of its flexibility and amount of development, but this does not mean it’s the only blockchain platform.
DeFi offers you control of your assets, and it can because of decentralization and blockchain technology. As of recently, many developers of financial apps are adopting open-source protocols for trading through decentralized exchanges as their open-source protocols allows anyone to build new financial products on top of them. Developers across the globe can collaborate to create new products leading to faster innovation and a secure network.
Blockchain technology allows anyone to store, trade, and invest their assets securely and earn a much higher return as compared to traditional financial systems. This is made possible by the fact that there are no intermediaries handling your asset, you have complete control over your investments.
What is the Geoma DAO ?
The Geoma DAO (geo=earth, ma=management) is nothing else than a Cryptocurrency Mutual Fund governed autonomously and decentralized by its Members. The DAO by its makeup is created to generate steady and sustainable growth not fast profits, it and it lives, communicates and interacts via Smart Contracts on the Blockchain.
Neither Funds nor Project Tokens are held by a centralised Leadership like in a normal commercial venture. By doing this the project is giving contributors certainty that they will not lose their funds in bad investment decisions or the event that the funds are mismanaged.
There will be no CEO, Upper Management, Middle Management, Lower Management and project founders are regarded as pure contributors to the Network. Their role is simply to oversee and build the first Ownership mass. Most fund-siphoning from the ICO-Market was done by Companies that had a Pyramid structure of governance.
Centralised governance allows individuals to create asymmetric information flows resulting in hazardous outcomes for other individuals, this is to say that this type of governance can easily lead to elaborate scams and manipulation in the decentralised world of the Autonomous Organisation
The Geoma DAO aims for Real-World Projects. Vertical Farming, Medicinal Cannabis, Green Energy, or the more conservative cash flow creator: Real Estate. Project and investment proposals are the primary way of decision making within the GEOMA DAO and implementation is decided by way of voting by members.
However, voting processes have problems with reaching consensus and this takes time to reach which might affect the project being voted for, to overcome this Geoma is going to use vote popularity to make decision making easier. For project implementation, Contractors will be appointed by voting as well. Once a Project is voted by Members of the DAO the ERC20 Utility Token will be swapped for a Security Token. For those who don’t want to swap a staking system will assure profits.
What is the GMD Token?
According to the Geoma whitepaper, the GMD - ERC20 Token is a Utility Token which gives Token Holders the right to propose, vote and take part in activities within the Network. The use of an ERC20 Utility Token will allow Geoma DAO to be fully compliant with regulators and to give access to a worldwide audience.
The Token bears proposal and voting rights. However, the GMD token is not a security token because it does not represent a reasonable expectation of profits to be derived from the efforts of others but the effort of the entire Network. The financial world's much acclaimed Howey test indicates, an “investment contract” exists when there is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others. Whether a particular digital asset at the time of its offer or sale satisfies the test depends on the specific facts and circumstances.
Therefore, the DAO will have a second Token Model and this Model will be a Security. The GMDST Tokens will be released to Members after the implementation of a real-world project has been voted into effect through the voting system discussed earlier. This Token bears Ownership and Divided Rights. GMDST will always be backed by Tangibles like Land, Buildings, Water, Forests, Food etc. In this regard the Token will have a relatively stable value, giving the Token holder certainty that his investment is secured and to certify this the GMDST Token comes married to a certificate of ownership .
The Benefits of Geoma DAO in a nutshell:
- As an investor, your funds are safe in Escrow
- You have the power of decision rather than rely on the decision of a small team
- You take an active part in project building and growth
- The Security Token is the vehicle to assure partial ownership rights and dividend or benefit payouts.
- The Token is secured by real-world assets; your investment is notarised by the Blockchain.
- Projects are not restricted to an area or a country.
- You conduct your business and finance in a unique new way and become an active participant in Blockchain adoption
and the Defi revolution.
For More Information on Geoma DAO
WEBSITE |ANN THREAD | WHITEPAPER | TWITTER | GITHUB | TELEGRAM | YOUTUBE |MEDIUM | LINKEDIN
About the Author
BTT username: dengpei
BTT Profile: https://bitcointalk.org/index.php?action=profile;u=1418412
ETH Address: 0x395FdBdC021B5615e3cF5dAFFdBC6895d29B19d1