Blockstack, the Ethereum competitor powered by Bitcoin, has come one step closer in making its effort to decentralize its network and making its Stacks tokens tradeable on the US cryptocurrency exchanges. As of now, the Stacks tokens are not tradable in any of the US cryptocurrency exchange, because no crypto exchanges till now hold the license to trade securities in the US markets as per the regulations laid in by FINRA, the US financial regulator.
After launching the Stacks foundation, which is a non-profit organization based in Delaware, Blockstack PBC has announced to contribute 100 million STX tokens as initial resources to support the Stacks decentralized ecosystem.
The contribution from Blockstack PBC is looked forward as a move to make the Stacks Foundation, “sufficiently decentralized.” Accordingly, Blockstack PBC filed a notice with the SEC explaining its plans to transfer certain assets to the Stacks Foundation governing the network.
As per the plans, Blockstack PBC will be transferring 100 million STX tokens, which worth approximately $23 million. It will also contribute 950K USD loan towards the working capital of the foundation and the IP rights for the different domain names like stacks.foundation, stacks.org, & stacksfoundation.com and for the Stacks 2.0 blockchain software.
The transfer of these assets is expected to help the Stacks Foundation distribute control among independent entities across the ecosystem. The Stacks Foundation will enjoy the full rights over these assets and can also take any decisions related to their administration, deployment, and development.
With this contribution from the Blockstack PBC, the Stacks Foundation will continue their work to make the entire network decentralized and can also use the resources towards the blockchain research and education of both the developers and the users. Moving funds for the Blockstack PBC is considered as a giant leap towards decentralization.
To build an infrastructure for user-owned internet, single-party control of the ecosystem is not enough. Therefore, it needs to be distributed, which is made possible through this integration.
Before contributing 100 million STX tokens to the Stacks Foundation, Blockstack PBC also contributed 30 million STX tokens to the foundation’s initial working capital. Though the main objective of this contribution is to support decentralization, there are other aspects as well.
Blockstack PBS is making efforts to relieve itself from the risk of being crushed by the SEC for hosting unregistered securities sale. Therefore, it quickly arranged for an ICO and raised $23 million in 2019 and now providing support to the Stacks Foundation with this offering.
