A closer look at DMACS

As discussed in earlier articles, the USAT Inc. platform has two cryptos in use: USAT Tokens (a volatile utility ERC20 token) and DMACs (a stable crypto asset that functions similarly to a bond)

Whilst most people understand how a utility token functions, DMACs are less well known. Here’s a quick look at how DMACs function and how they fit into the USAT Inc. platform.

What is a DMAC?

DMAC stands for Digitally Mined Asset/Commodity. Unlike traditional coins or tokens, DMACs are not volatile, since their value is not linked to market speculation.

DMACs are made up of a combination of underlying blockchain units, with each unit carrying out a specific role. For example, the different units may define: a contract between the parties, a term, a yield from mining, and a legal framework. DMACs are a product of dWealthServices.com (dWS), which is an online financial institution that converts value across five crypto and 172 fiat contracts. dWS is currently backed internationally by investors and eight banks worldwide.

How do DMACs work with USAT Inc.?

The stability of a DMAC comes from its structure. Having a contractual store of value, like an escrow or a yield like a bond, DMACs yield an additional 5% (or higher) of their value at the end of their term, and can be traded for the contract value of the company’s profits made during that term. The contract part of the blockchain that makes up a DMAC defines the percentage of the profit the company will trade a DMAC for (on top of the original value of the DMAC).

The extra 5% of the DMAC is generated through low-impact proof of stake/proof of work mining, which it does automatically when it is being used in conjunction with a project (e.g. any of USAT Inc.’s projects/technologies). On the dWS platform, these projects are called ‘Action-Projects’. If a DMAC mines more than 5%, the extra value is passed onto the Action-Project, up to a cap of 10%. If the DMAC mines a higher return than 10%, it is split evenly between the DMAC holder and the Action-Project (e.g. if a DMAC mines 12%, the DMAC holder and the Action-Project will each receive 6%).

What protects the value of a DMAC?

If for some reason the company an investor purchased the DMAC from should fail, the DMAC can be returned to dWS, which will honour the value of the DMAC.

dWS has a constant demand for DMACs from its partner banks, as DMACs are used for their back-end reconciliations. This means these banks will always be guaranteed buyers for DMACs, protecting their value and the DMAC-holder’s investment, regardless of what happens to any other involved party.

How do they fit into the USAT Inc. platform?

The stability and security of DMACs makes them an attractive option to investors and their flexibility means they can accommodate a wide range of investment options: from $100 to $100m. This means anyone can support a project and benefit, regardless of their resources.

The flexible structure of DMACs also allows them to be attached to specific projects (for those interested in a particular technology), spread across multiple projects, or used to directly support the USAT Inc. platform itself. This lets the investor decide how their funds are being used to make a positive impact on the world.