In this edition of Cointelegraph’s podcast, “Hashing It Out,” host Elisha Owusu Akyaw sits down with Micah Yeackley, co-founder of Kula DAO, a project that aims to tokenize a wide range of real-world assets on the blockchain. They discuss the potential of this sector in the Web3 space and its implications for developing markets. The conversation also covers topics like regulation and how tokenizing real-world assets can impact retail and institutional investors.
Yeackley explains that the scope of tokenizing real-world assets goes beyond what most people anticipate. While Kula initially focused on natural resources, they quickly realized that any asset with real-world value could be tokenized. This includes water resources, agricultural projects, and real estate developments.
Highlighting the diverse range of assets that can be tokenized, Yeackley suggests that projects are more likely to benefit from having a variety of assets, which is the approach Kula takes. He introduces the concept of the “DoubleDAO,” a component of Kula DAO’s governance structure that combines elements of both Web2 and Web3 governance. The DoubleDAO ensures checks and balances during the decision-making process of the decentralized autonomous organization (DAO). It provides layered protection for assets, ensuring the voices and participation of key stakeholders are safeguarded. Additionally, the DoubleDAO includes a “RegionalDAO” where local communities impacted by the assets can actively participate in decision-making.
Yeackley also highlights the positive impact of the project’s implementation in Zambia. Through the voting process, changes have been made at a partner mine, such as equal pay for women and the construction of social amenities.
Regarding regulation, Yeackley acknowledges the challenges faced by projects in this sector. However, Kula has received pre-approval from the Virtual Assets Regulatory Authority in Dubai and is set to become the first regulated RWA DAO to tokenize natural resources and commodities. Yeackley believes that regulation should be the first step, rather than the last, in a sector that already has extensive regulation in the traditional financial landscape.
To learn more about these topics, listen to the latest episode of “Hashing It Out” on Spotify, Apple Podcasts, or TuneIn. You can also explore Cointelegraph’s collection of informative podcasts on the Cointelegraph Podcasts page.
Please note that this article is for general information purposes only and should not be considered legal or investment advice. The views expressed here are the author’s alone and do not necessarily reflect the views of Cointelegraph.