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National ‘Fan Token’ To be Issues by Tron in Partnership with Dominica Government

Are you familiar with the blockchain-based operating system Tron? If you are always curious to explore new and unique blockchain and NFT projects, then Tron is undoubtedly one of those projects that quickly made its place in the market and the communities. 

But what’s new about Tron? Is it announcing new features or something exciting for the users? This time the platform is introducing its international fan tokens for the community members. 

According to an announcement on October 7, blockchain network Tron has entered into a partnership with the government of Dominica to create a national fan token to promote the Caribbean island’s heritage and tourism industry.

Following the terms of the agreement, the “designated national blockchain infrastructure” of the island nation is the Tron protocol. A law issued on the same day shows that the native digital currencies of the Tron network were awarded “statutory standing.” This means the tokens are now permitted for usage as a medium of exchange within the nation.

What is Expected From The Government With The Launch of These Tokens?

According to the decision, the government may take Tron governance tokens like TRX, BTT, and JST, as well as stablecoins pegged to the United States dollar on Tron’s TRC20 protocol like USDT and USD, as payment for public services, including tax payments. These digital currencies can also be accepted as a form of payment by private businesses “where the requisite infrastructure for transactions is available.”

In addition to the endorsement, Tron plans to launch Dominica Coin (DMC). This blockchain-based fan token will “help promote Dominica’s global fanfare for its natural heritage and tourism attractions,” as stated by the Dominican government. DMC will be distributed in conjunction with the endorsement.

It is not clear how Tron was selected for the task; however, Dominica’s Prime Minister Roosevelt Skerrit stated in a press statement that the “open and cost-effective nature” of the protocol will play a “vital role to better integrate Small Island Developing States like Dominica into the global economy in the future.” Despite this, it is unclear how Tron was selected for the task.

Last year, Tron founder Justin Sun accepted a position as Grenada’s ambassador to the World Trade Organization. In this role, Sun stood aside from his position as CEO of the Tron network. At the time, he stated that one of his primary goals would be to promote the legalization of cryptocurrency in Latin American nations.

In Dominica, the market will freely establish the exchange rates between Tron’s native tokens and the East Caribbean dollar (XCD). Furthermore, according to the ordinance, capital gains tax will not apply to transactions between the tokens and the XCD.

What are your views on this?

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