Karmacoin, a digital currency focusing on rewards, has ramped their administrative goals by recently beginning the procedure to form an LLC. “The purpose of creating a legal entity is to establish a workable business model which can generate revenue. Most cryptocurrencies really serve no purpose other than to make their creators wealthy,” says Tony Sorel, Managing Director of Karmacoin. “We want to reward our community by generating revenue and distributing 100% of profits to members by offering Karma-branded products and services to schools and organizations, retail shops and small businesses, local governments, and the general public.”
With a legal operating entity, Karmacoin will be better-positioned to establish and expand lasting relationships and complementary partnerships with organizations in need of workable solutions to shake up their current operations strategy. “This is the first step in really cementing our partnership. There are a lot of investors out there who will love not just the business model, but also the motivation and ideological goals behind it,” says a prospective angel investor, speaking in anonymity due to an existing NDA signed with a partner organization.
Karmacoin is positioning itself in an industry plagued with bad press. While worldwide public opinion of cryptocurrencies is on the decline, users are also losing confidence in cryptocurrency exchanges. With the Mt. Gox troubles only piling on top of other recent scandals, Karmacoin seeks to differentiate itself through an untainted reputation with a sterling commitment to social responsibility and transparency. “We’re different, to be sure,” says Sorel. “We want our community to know we’re in it for the long haul and we’re going to set the bar for standards and ethics within our industry.”
Products and services will include a location-based mobile shopping app, a rewards-based social networking site, a Karma-branded NFC card and system for retail shops and small businesses, and a “freemium” version of the Karma system for the general public, all of which will leverage Karma rewards and add value to the cryptocurrency’s economy.
As for the incorporation, management plans to distribute 100% of the profits to members of the LLC in a co-op-like fashion where the blockchain will be used as a publicly-accessible shareholder register. Karmacoin will operate under the legal entity “Karmashares LLC,” and will be entirely owned by the community. Management is not reserving any shares or portions of the business for itself.