Blockstack to transfer $27 million worth of tokens to the Stacks Foundation to bolster decentralisation

The blockchain startup Blockstack will provide the Stacks Foundation with 100 million STX tokens to bolster the network’s decentralisation. The company hopes this will assist in stepping out from under the oversight of the U.S. Securities and Exchange Commission (SEC).

Blockstack PBC is transferring a mix of assets, including Stacks tokens, USD, and IP rights to support the Stacks Foundation and ultimately help bootstrap both the Stacks ecosystem and blockchain.

Read more about the contribution agreement: https://t.co/Yq6hD72ZyF

— Blockstack (@blockstack) August 10, 2020

According to Form 1-U, the value of the transferred tokens was $27 million. Along with 100 million STX, the Stacks Foundation will receive IP rights in the blockchain platform Stacks 2.0. Blockstack will hand over full control and discretion to the nonprofit with respect to its administration, development and deployment.

The startup also offered the Stacks Foundation a credit line of $950,000 at an annual rate of 0.17% to replenish working capital, with a two-year grace period and repayment over the following year.

Blockstack did not rule out entering into similar deals with other companies that will support the Stacks ecosystem. Details of such deals will not be disclosed.

“We believe that for the successful execution of our mission to build a decentralised Internet, the infrastructure underlying the Stacks ecosystem cannot be controlled or substantially dependent on a single participant,” commented the project’s CEO Munib Ali

In May 2019, Blockstack unveiled a decentralised Internet browser, which was intended to become a kind of “Netscape for Web 3.0.” Blockstack is registered with the SEC as a nonprofit charitable organisation. Stacks Foundation was created in February to govern the project’s ecosystem.

STX tokens are classified by the SEC as securities. In September 2019, Blockstack raised $23 million in the first cryptocurrency crowdsale under Regulation A. The company expects to exit SEC oversight following the release of the Stacks 2.0 blockchain in Q3 of this year. After that, a renewed Howey test to determine STX’s status as securities is expected.

At present these tokens are listed on Binance, KuCoin and Hoo.

Earlier, ForkLog published an exclusive interview with Blockstack CEO Munib Ali, in which he shared details about the workings of the project he leads and his vision for a future digital society.

CEO Blockstack: Bitcoin will become the foundation of Web 3.0 and the digital society of the future

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