The problem is that society’s lack of openness and transparency often creates fertile ground for mistrust and mushrooming of misconceptions and negative perceptions that is dangerous to the governance of any ecosystem. The process of governance is incomplete without upholding transparency.
Take for example pension fund management: despite being heavily regulated, there are still several cases of fraud in pension funds around the globe like in UK and Brazil.
The main problems related to fraud in a pension fund include: employer not paying contributions, misappropriation of investment assets, improper payment for services, abuse of position providing of pension benefits or payments, deny in pension benefits, hidden fees and financial statements manipulation.
When an institution is able to lay bare its operational activities for open scrutiny by the public it allows citizen participation, involvement and meaningful engagement such that it can protect itself from the powerful and the corrupts, when they are acting in secrecy and concealed practices to take advantage from the system inefficiencies. That’s why we believe that radical transparency is the most potent strategy to battling corruption and misrepresentation.
Blockchain technology is all over the press these days, mostly because of cryptocurrency high prices, volatility, and ironically by the dark side of it, surrounding frauds like global hack attacks. While the mainstream media has been busy speculating about prices and black market intrigues they’ve been missing the fact that beneath it all, by creating the right system, with the right guarantees you can fix bad incentives. You can eliminate corrupt middlemen and rent-seekers.
Using Ethereum as a platform for blockchain you can create a smart contract, which is an agreement, in the form of a computer program, that is executed automatically once certain pre-programmed conditions are satisfied.
The Auctus Platform will be a global smart contracts-based platform for pension funds designed to adapt to different legal and regulatory standards. Through smart contract auditable code the platform will ensure full transparency and compliance to the fund rules.
Smart contracts will be developed to calculate contributions, employer match and benefits, and other features such as investment profiles, beneficiaries designation (in case of death), administration fees calculations and portability between funds.
What’s Next?
The first step in our roadmap is to create our own pension fund using smart contracts that will work as a Proof-of-Concept for our platform and help us validate the project. The first smart contract-based pension fund will consist of digital assets as we chase solutions to also invest in traditional assets and enable adoption by traditional funds
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