Ethereum based startup, Trust Stamp has announced the founding of DAOTRUST.

The company provides protection against identity theft, friendly-fraud and stranger-danger, by supplying a secure digital token verifying the user’s photograph, identity and trustworthiness

In a press release, the company announced the founding of DAOTRUST, an Ethereum domiciled DAO (Distributed Autonomous Organization) that will administer a charitable endowment representing an initial 10% ownership stake in Trust Stamp.

Why Trust Stamp is not DAO

According to the CEO of Trust Stamp, Andrew Gowasack, the company would have been structured as a DAO except for certain reasons. He explains;

"Given our innovative use of the Ethereum Blockchain in a number of our verticals, we have been asked why we did not structure Trust Stamp as a DAO and the reason is that our core business will be seeking banking and other licenses and needs to meet existing regulatory norms. The use of a DAO as a charitable administrator is however a perfect use for such a transparent, democratic and incorruptible entity."

“While there should be no doubt that the Trust Stamp founders are committed to the creation of significant wealth for the company’s participants, we also believe that strategic philanthropy is an appropriate and prudent element of long-term planning.” Continued Gowasack.

Charity delivery procedure

The announcement describes the method of delivering such charity thus:

The initial voting members of DAOTRUST are the Trust Stamp founders with future voting rights accruing to strategic partners and individual Trust Stamp users. DAOTRUST will distribute to charity its share of dividends that are paid by Trust Stamp and it's share of any future sale or IPO with all voting members of the DAO being able to participate in the selection of the charitable beneficiaries.

Frank Hanna as investor

Application of Trust Stamp's leading edge technology to philanthropy is not surprising given the role of the lead investor behind the company: Hanna Capital CEO, Frank J. Hanna III.

Mr. Hanna was awarded the William E. Simon Prize for Philanthropic Leadership by Philanthropy Round Table, was one of three entrepreneurs profiled in the Acton Institute’s The Call of the Entrepreneur documentary and is the author of the book: What Your Money Means (And How to Use It Well), which lays out paradigms for ethical engagement with wealth and delineates prudent, efficient philanthropic strategies.