AUDITCHAIN TOKEN ECONOMICS

Thursday, July 11, 2019 / PUBLISHED IN News

AUDT Token to Govern World’s First Gamified Continuous Assurance and Real Time Financial Reporting Platform

Applying traditional audit methodologies and processes to digital assets is like recording a digital piano through an amplifier using an analogue microphone. Simply put, it lacks fidelity. Auditchain proposes expert network enterprise external validation in real time by a network of CPAs and Chartered Accountants governed by an incentive system using the AUDT Token.

Traditional assurance involves one auditor and one enterprise. They are paid by wire or by check. An opinion, signed in wet ink, is issued by the auditor on financial condition as of the end of the period under examination. Auditchain proposes that attestation levels be recorded by each of the several validators on every block, not once per year.

Systemic risk becomes inevitable as the result of the ability to conditionalize or enhance financial performance, a known practice in the annals of managing growth expectations. Is this condition a contributing factor to the occurrence of a financial crisis? If wholesale manipulation of financial performance can persist, we may continue to see periodic systemic financial damage followed by central bank aided recovery. Can an improved audit methodology prevent severe economic volatility?

Consortium Based Utility and Staking

Auditchain is the founding member of the DCARPE Alliance, an accounting, audit and financial reporting consortium which is leading the development of the DCARPE Assurance and Disclosure Protocol. Enterprise external validation is performed by a network of enterprise external validators; as opposed to a single auditor. Enterprise external validators are CPAs and Chartered Accountants who are members in the assurance category of DCARPE Alliance. Each validator must stake AUDT Tokens. They externally validate three categories of assurance; (i) system and control functional compliance, (ii) financial data structure and accuracy and (iii) disclosure control compliance with GAAP and/or IFRS. They are paid with the AUDT Token for the external validation.

The AUDT Token is consumed through staking by enterprises, CPAs, Chartered Accountants, providers of enterprise software and other service providers as well as subscribers to detailed audit analytics and real time financial statement line item detail through the DCARPE Explorer.

Robust staking fosters an incentive to provide uninterrupted service and reduce the cost of services on the network as well as enforces a fair and balanced assurance process. It also consumes a significant amount of AUDT Tokens and removes them from circulation. Enterprises must stake a minimum of 4 months’ worth of compliance/software/utility costs which are determined at the conclusion of the scope of implementation. Their stake is decremented monthly.

Enterprise External Validators

Enterprise external validators are CPAs and Chartered Accountants who are members in the assurance category of DCARPE Alliance. Each validator must stake 25,000 AUDT Tokens. They externally validate three categories of assurance; (i) system and control functional compliance, (ii) financial data structure and accuracy and (iii) disclosure control compliance with GAAP and/or IFRS. They are paid with the AUDT Token for the external validation. There are over 3,000,000 accountants and auditors globally who are all potential DCARPE Alliance members.

Enterprise Staking

The AUDT Token is also staked by enterprises. They are the largest consumers of AUDT Tokens. Enterprise staking consumes a significant amount of AUDT Tokens and removes them from circulation. Enterprises must stake a minimum of 4 months’ worth of compliance costs which are determined at the conclusion of the scope of implementation. Currently, digital assets pay between $500,000 and $1,000,000 to a single auditor every year.

Staking by Service Providers

Providers of cloud-based accounting, human resource and ERP software must provide enterprise software and services to the network for enterprise consumption. Each service provider must also stake a minimum of 25,000 AUDT Tokens in order to provide services to the network.

Staking by DCARPE Explorer Subscribers

AUDT is also staked and consumed by subscribers to the DCARPE Explorer who subscribe to a variety of access to detailed financial statement and audit analytics data on a per block basis for each digital asset. Subscribers will be able to make micro payments to see on the spot detail or purchase the rights to detail on any number of blocks going backward in time or forward.  In addition, third party service subscriptions consumed through the DCARPE Explorer will enable the creation of dynamically updating actionable research reports on selected digital assets for investors as well as thesis-based analytics for enterprise forecasting.

Limited Supply

There are only 250,000,000 AUDT Tokens but only 160,000,000 will be available for circulation.  CPAs, Chartered Accountants, providers of enterprise software and other service providers as well as subscribers to detailed audit analytics and real time financial statement line item detail through the DCARPE Explorer.

Below is an example of the yearly average amount of AUDT Tokens staked on the network by each actor;

High Utilization Ratio

100 Enterprises on the network will dry up all of the supply when combined with all the external validators required for each enterprise. The staking model excludes consumption and utility and also excludes any potential burn for bad actors.

The AUDT Token will govern the new decentralized enterprise world. It’s what drives assurance of the modern enterprise from initial certification, early detection and remediation to financial and audit analytics disclosure in real time with the highest levels of integrity through enterprise external validation.

MVP

Auditchain has developed an MVP of the DCARPE Assurance and Disclosure Platform. CLICK HERE to watch a demo video of the platform.

Auditchain Partners with Monax to Integrate Dynamic Legal Contracts into DCARPE Assurance and Disclosure Platform

Shyft Network and æternity Join DCARPE Alliance

Auditchain to Present at Consensus: Invest

Stay in touch for news and release date