Hashing It Out: Are RWAs the future of crypto?

In episode X of “Hashing It Out” by CryptoMoon’s podcast, Elisha Owusu Akyaw, the host, talks with Micah Yeackley, the co-founder of Kula DAO. They discuss the potential of real-world asset (RWA) tokenization in the Web3 realm during their conversation. Micah shares insights on how this sector could impact developing markets.

The episode explores other important themes, including regulations and the implications of RWAs on the blockchain for both retail and institutional investors.

According to Yeackley’s perspective, the process of digitizing or “tokenizing” tangible assets goes beyond what many people initially consider. Although Kula initially concentrated on natural resources, it became apparent that various types of assets with genuine value could be tokenized. This includes not only natural resources but also water resources, agricultural projects, and real estate developments.

According to Yeackley’s perspective, with the vast selection of Recurring Wireless Agreements (RWAs) that can be tokenized, it is advantageous for projects to have a rich and varied asset base, similar to Kula’s strategy. He elaborates as follows:

“Well, when you talk to any savvy investor, anybody that’s investing money for a long time, they’re experienced at it. They’re always going to say diversification is key.”

The “DoubleDAO,” a part of Kula DAO‘s governance system, as explained by Yeackley, is designed to merge the strengths of Web2 and Web3 models in decision-making within decentralized autonomous organizations (DAOs). This mechanism ensures a balance of power and prevents potential issues during the voting process. The Double-DAO offers an added layer of security for crucial stakeholders’ voices and involvement.

In the Double-DAO setup, there’s a “Regional Decision-Making DAO” that allows local communities impacted by the assets to engage in the decision-making process.

Additionally, he emphasizes that the implementation of the project in Zambia resulted in significant improvements at a collaborating mine. These advancements include equal compensation for women and the development of community facilities via a community vote.

Hashing It Out: Are RWAs the future of crypto?

In terms of regulation, Yeackley expresses the challenge for projects in this field to be governed. Notably, Kula has secured pre-approval from the Virtual Assets Regulatory Authority in Dubai, marking it as the first regulated RWA DAO to tokenize natural resources and commodities.

According to Yeackley, it’s essential to implement regulations right from the start in an industry known for heavy regulatory oversight in the conventional financial world.

Check out the newest installment of “Hashing It Out” by visiting its page on Spotify, Apple Podcasts, or TuneIn. For more episodes from CryptoMoon, browse their comprehensive collection on the CryptoMoon Podcasts webpage.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.

Read More

2024-04-11 15:23