Kleros – Compliance for the World Of Decentralized Finance
Unravel the complexities of Kleros, a game-changer in the realm of decentralized finance. Discover how it ensures compliance, fostering trust and transparency in a world often shrouded in ambiguity. A deep dive into the mechanics of this revolutionary platform awaits.
How Kleros can secure the DeFi ecosystem
A notable moment in world economic history was the creation of the joint stock company.
- By the end of the 17th century, shares of at least 150 corporations were traded at London’s Royal Exchange, a market that also housed other merchants such as grocers, druggists and clothiers
- The government looked down on the nascent stock market and, in 1696, passed an act to restrain the practice of brokers
- Brokers were exiled from the Royal Exchange and congregated in Change Alley
- In 1700, when the city government prohibited them from meeting on the street, their main trading venue became Jonathan’s Coffee House
- None of the agreements were enforceable in official courts of law, but people engaged in them nonetheless
Public/Private Governance and the Future of Decentralized Finance
Regulation of financial markets has gone a long way since the early days of gentlemen’s clubs in London coffee houses
- The regulatory body for today’s global financial infrastructure is a multi-stakeholder mechanism which encompasses public and private actors
- A more widespread adoption of the Kleros Token Curated Registry can be an excellent first step for the regulation of the emerging DeFi ecosystem
What Decentralized Finance Can Learn from the Early Days of Capital Markets
Private governance can fulfill a key role in creating and enforcing rules when regulators and courts lack the knowledge or a way to do it in a cost-effective way.
- The emerging decentralized finance ecosystem (DeFi) seems to share many features with the rise of corporations and stock exchanges in the 17th and 18th centuries.
- Cryptoassets can be transferred across boundaries at near zero cost enabling entrepreneurs to crowdfund projects where very small investors can participate (and profit!) from tokenized ownership.
Kleros launched Token Curated Registry of Tokens (T2CR)
Anyone can submit tokens and other users can vet them following a number of predefined rules.
- In order to have a token accepted into the list, it had to comply with some minimal conditions such as not having a malicious address.
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