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Token Classification, SEC

Below are listed criteria by which Ace Stream DAO and XAB and AST could be estimated by regulators

  1. There are no dependencies on 3rd-parties' actions :

    • A self-regulated, decentralized, open-source network (Apache 2.0 License);
    • The rules of the Network are enforced by the protocol itself, nodes operators and users' consensus;
    • Transparent self-regulated economics. The logic of all economic and regulatory processes of the network is based solely on the rules and logic implemented in platform's software;
    • High level of confidentiality and freedom of digital assets through decentralisation and cryptography, with no participation of third parties;
  2. The distributed registry network and digital assets are fully developed and ready for production (it means the network is already functional and tokens can already be used for their purposes)

  3. Network tokens are money and are the method of payment

  4. Tokens serve their own purposes which don't include speculative trading on exchanges

Examples of how tokens can be used within the Network:

  • Purpose of tokens

    • Transaction fees - could be paid only by token XAB
    • Voting for changes to the Network's system protocols and smart contracts - payable by token only AST
  • General purpose tokens (accept XAB and/or AST as payment)

    • To pay for traffic (P2P CDN)
    • Payment for access to content published on the Network
    • Payment by members of the Network for tokenization of their own assets on the Ace Network platform
    • Purchase of copyright and retransmission/distribution rights
    • Payment for the placement of advertising materials on the Network
    • Acquisition of rights to moderation in Ace Stream search engine (opportunity to delete content from search results, provided for holders of rights and state services)
  • Owners/holders of tokens do not receive any income and are not affected by the profit made by the Network from the sale of services.

Explanation: Token holders can receive income and thus be affected by the profit/loss of the Network only if they are participated in DeFi programs Ace Stream DAO. To become members they have to pass registration procedure and deposit their tokens into special accounts served by the smart contracts of one or another DeFi program