Description and functionality of the AUDT Token
Integration with the Auditchain Protocol enables any reporting entity to communicate financial disclosure and provide proof of financial state to its stakeholder community. It also puts a reporting entity one click away from filing with 60 jurisdictions across 100 regulatory agencies.
The maximum supply of AUDT minted will be decided by the community. In all cases, minting occurs when claims from sales and claims for rewards are made by actors on the Auditchain Protocol.
Staking - A minimum of 5,000 AUDT is needed to "operate" a Pacioli Node. This amount is subject to governance. Anyone who holds a balance of AUDT can "delegate" their AUDT and "back" a Pacioli Node operator and earn passive income.
Settlement - Who Pays?
- Reporting Entities
- Data Subscribers
Settlement - Who Receives Payment?
- Process Control NFT Creators
All obligations on the Auditchain Protocol are settled in AUDT. Users such as enterprises pay for access to the Luca Suite for taxonomy, report model and financial state reporting. Passing financial state to external validators running Pacioli for state validation requires settlement. Validators receive AUDT as payment for fulfilling validation requests. Royalties are paid in AUDT to creators of Process Control NFTs and are also paid to the validators who prove that the Process Control NFTs work correctly. Subject to governance, subscription payments by data subscribers who access premium levels of financial state are allocated between reporting entities, validators and the developers of the Auditchain Protocol.
Governance - Monetary policy is set by the community of AUDT holders through adjustments to the amounts paid for each validation performed by validators. Changes in functionality are immediately invoked upon the passage of a vote on the following functions:
- Changes to the amount of rewards paid to validators through inflation
- Changes to the amount of rewards matched by the reporting entity
- Changes to the allocation of proceeds from data subscriptions between members of a cohort
- Changes to the minimum balance required for continued compliance by a reporting entity (fair warning)
- Changes to the minimum number of validators in a cohort
- Changes to the minimum percentage of validators in a cohort required to achieve consensus
The EVC calls the minting function of the AUDT Token contract. The EVC is the factory contract that outputs engagement contracts between each enterprise and its cohort of validators. The EVC is capable of six separate categories of assurance. At launch, each cohort for each category of assurance will require a minimum of 3 validators. This can be changed through on-chain governance.