Derivatives trading is a popular part of traditional markets, and DCORP is looking to bring that to the digital assets.
What Is DCORP?
DCORP is a blockchain company trying to create a future where stock markets are on the blockchain. Essentially, DCORP wants to make it easier for more people to participate in – and benefit from – venture capital fundraising.
DCORP is autonomous, decentralized and democratic. An organization that exists on blockchain as a series of smart-contracts. DCORP manages its own token (DRP) and the Ether it holds. Anyone can join DCORP as shareholder or talented contributor, anonymously through their Ethereum account.
The goal of the platform is to create a future where traditional stocks, indices, and currencies (both fiat and crypto) are represented by tokens on the Ethereum blockchain, all while being backed by a traditional asset hold on a third party account – like a law firm.
The shareholders are the collective owners of DCORP and decide on the business financials. The Board of Directors manage DCORP on a day-to-day basis, are elected and publicly known. All voting behavior is stored on the blockchain and thus made public.
Tokens (which work as exposure to the asset) can then be traded and used as underlying assets. Ultimately, this will create an economy located entirely on the blockchain. Tokens are used as the underlying assets (i.e. the asset where the derivative contract derives its value).
Investors stand to benefit by harnessing the power of derivatives. Traditional derivatives like futures and options will be available, which will allow investors to hedge and risk manage better.
Investors will also benefit from “futures with ascending stakes,” where they can allow trading parties to raise stakes incrementally as the contract approaches maturity. In order to achieve this incremental increase in stakes, the contract is divided into terms and at the end of each term contracting parties must increase their deposit by the required percentage. In the case of default, the defaulting party may lose their deposit.
This type of futures derivative allows for minimal impact on leverage positions. There is a white paper available for those who want to read more about the type of derivatives that will be made available on the exchange.
How Does DCORP Work?
DCORP plans to make money in this new economy by creating projects like derivatives exchanges. DCORP has already created a platform that allows derivatives trading in the form of smart contracts on the Ethereum blockchain where the exchange exists.
By using that exchange, users can access a friendly interface while avoiding intermediaries like market makers, bankers, or third parties. Like other blockchain technology companies, this means the platform is decentralized and autonomous.
DCORP, if you haven’t figured it out, stands for “decentralized corporation”. In addition to being decentralized and autonomous, the platform plans to be democratic. Anyone can join DCORP as a shareholder or talented contributor. These shareholders are the collective owners of DCORP and will decide on business financials.
Although DCORP is democratic, there will be a Board of Directors in charge of everything. The Board of Directors manages DCORP on a day-to-day basis. These directors are elected and publicly known. All voting behavior is stored on the blockchain and completely transparent to the public. The Board of Directors consists of 7 members.
How Does DCORP Bring Ideas To Profit?
The goal of DCORP is to help smart contract business ideas go from the business stage to the profit stage. Here’s the step-by-step process of how DCORP works to do that:
Step 1) Submit an idea: A smart-contract business idea is described and discussed on the forum.
Step 2) Proposal: If there’s enough support for an idea, it gets turned into a formal proposal, then submitted to the community.
Step 3) Shareholders vote: Shareholders have 7 days to vote about a submitted proposal.
Step 4) Fund is deployed: If the proposal was approved, a fund contract is automatically deployed on the blockchain.
Step 5) Development: Managers are assigned to projects, with funds and code released periodically.
Step 6) Product launch: The smart-contract product is released, then profit is distributed as recorded in the contract.
You can view more detailed information from the DCORP whitepaper. It goes into a more in-depth technical description of how DCORP’s funding process works.
How Does The DEP Derivatives Exchange Work?
The core product launched by DCORP so far is the DEP Derivatives Exchange. That exchange is powered by Ethereum.
Using the exchange, investors can leverage, hedge, and trade options/futures over the blockchain. Some of the key features of the platform include:
- Next generation, decentralized platform for options and futures trading
- Simple, low-cost, and autonomous operation
- Clever model of ascending stakes to maximize leverage in an anonymous world
- Allow multi-token derivatives to spread out the risk
- Safe and transparent exchange that uses a public, immutable, and zero-downtime ledger (the blockchain)
DCORP aims to streamline and democratize the world of venture capitalism. It introduces a unique concept into the world of VC funding – DCORP has created a token that allows the voices of shareholders to be heard within the organization they create, while also allowing shareholders to receive dividends or fund future projects.
In other words, it makes it easy for anyone to participate in – and benefit from – the world of venture capital.
The DCORP Crowdsale
DCORP currently has a crowdsale of their token DRP, meaning that people can buy in and literally own part of this exchange where they will bring derivatives and options into cryptocurrency trading. Once this is well under way, they hope to potentially bring the blockchain to traditional investments as well. Here they would have traditional assets -such as stocks, commodities, fiat currenies, etc- all represented as tokens on the Ethereum Blockchain.
DCORP’s crowdsale opened on June 1, 2017, and will end on June 29, 2017. Scaling bonuses are available throughout the sale. During the first week, for example, investors enjoyed a rate of 1 ETH = 550 DRP. That exchange rate drops to 1 ETH = 400 DRP by the last week. To participate in the sale, just send ETH to the DCORP address.
DCORP was founded by Frank Bonnet, an entrepreneur with 9 years of experience building .NET applications. He’s also the founder, developer, and owner of a Netherlands-based insurance company named DS Verzekeringen. Other key members of the team include Hansco Leek and Corben Leek. Full details of the DCORP team can be viewed online at DCORP.it.
More information on DCORP: https://www.dcorp.it/
DCORP Whitepaper: https://github.com/frankbonnet/DCORP-Whitepaper/blob/master/whitepaper%20v0.3.2_EN-revised.pdf