Digital World Jobs Act

Section 1: Digital Crowdfunding and Investment Regulations

To support innovation, entrepreneurship, and job creation in the Digital World, the following frameworks are established, inspired by Regulation A+ (Reg A+) and Regulation D (Reg D) from the U.S. regulatory system. These frameworks enable digital startups and businesses to raise capital while ensuring transparency, accountability, and investor protection.

1.1 Digital Regulation A+ (Digital Reg A+)

Purpose:

Digital Reg A+ allows digital startups and businesses to raise funds from a broad base of investors, including the general public, through decentralized crowdfunding platforms. It is designed to provide access to capital while ensuring transparency and compliance with Digital World regulations.

Key Features:

1. Two Tiers of Fundraising:

• Tier 1: Allows businesses to raise up to $5 million equivalent in digital assets or currency within a 12-month period.
• Tier 2: Allows businesses to raise up to $75 million equivalent in digital assets or currency within a 12-month period.

2. Eligibility:

• Digital startups, businesses, and projects registered in the Digital World with a valid Digital Identity (DI) and a positive Digital Reputation are eligible to apply.
• Businesses must provide a clear business plan, financial projections, and risk disclosures to potential investors.

3. Investor Protections:

• Tier 1 offerings are open to all investors, with no limits on investment amounts.
• Tier 2 offerings impose limits on non-accredited investors, allowing them to invest up to 10% of their annual income or net worth to mitigate risk.

4. Disclosure Requirements:

• Businesses must submit offering documents, including financial statements, to the decentralized registry for public access.
• Tier 2 offerings require audited financial statements and ongoing reporting to maintain transparency.

5. Blockchain Integration:

• All fundraising activities under Digital Reg A+ must initially occur on the Digital World Layer 0 Blockchain, which serves as the foundational blockchain for the Digital World.
• The Digital Identity (DI) system and Digital Reputation are natively integrated into the Layer 0 Blockchain to ensure trust, transparency, and accountability.
• Businesses may link to other blockchains (e.g., Ripple, Stellar, Ethereum, Bitcoin, Solana, or Tron) through derived keys from the DI, enabling interoperability and scalability of Digital Reputation across multiple chains, provided these blockchains meet security standards.

6. Regulatory Fees:

• All regulatory fees for Digital Reg A+ offerings must initially be paid using Digital World NATIVE Digital Assets.
• The use of NATIVE Digital Assets ensures seamless integration with the Digital World Layer 0 Blockchain and simplifies fee processing.
• Future updates may allow for additional payment methods as the ecosystem evolves.

1.2 Digital Regulation D (Digital Reg D)

Purpose: Digital Reg D provides a streamlined framework for digital startups and businesses to raise funds from accredited investors with fewer disclosure requirements. It is designed to facilitate private fundraising while maintaining investor protections.

Key Features:

1. Exempt Offerings:

• Digital Reg D allows businesses to raise unlimited funds from accredited investors without the need for extensive public disclosures.
• Offerings are exempt from the full disclosure requirements of Digital Reg A+ but must comply with basic reporting and anti-fraud provisions.

2. Accredited Investors:

• Accredited investors are defined as individuals or entities with a high level of financial sophistication, determined by their income, net worth, or professional certifications.
• Verification of accredited investor status shall be conducted through the DI system to ensure compliance.

3. Fundraising Limits and Restrictions:

• There are no limits on the amount of funds that can be raised under Digital Reg D.
• Offerings must be private and cannot be advertised to the general public, except under specific exemptions (e.g., Rule 506(c), which allows general solicitation if all investors are accredited).

4. Blockchain Integration:

• Fundraising under Digital Reg D must also occur on the Digital World Layer 0 Blockchain to ensure compliance and transparency.
• Businesses may link to other blockchains (e.g., Ripple, Stellar, Ethereum, Bitcoin, Solana, or Tron) through derived keys from the DI, enabling cross-chain interoperability while maintaining a unified Digital Reputation, provided these blockchains meet security standards.

5. Regulatory Fees:

• All regulatory fees for Digital Reg D offerings must initially be paid using Digital World NATIVE Digital Assets.
• This ensures consistency with the Digital World’s foundational blockchain infrastructure and simplifies fee collection.

1.3 Blockchain and Digital Identity Integration

• Digital World Layer 0 Blockchain: Secure, transparent, tamper-proof.
• Derived Keys: Link DI to other blockchains while maintaining reputation.
• Scaling Digital Reputation: Consistent across chains.
• Automated Auditing: Smart contracts ensure real-time transparency.

1.4 Taxation in the Digital World

• Zero Tax Policy: Default 0% tax for growth.
• Country-Specific Taxation: Compliance with local laws.
• Seamless Tax Environment: Tools for automatic calculation & DI-linked reporting.

1.5 Penalties and Reputation Impact

• Simplified Penalties: Focus on Digital Reputation impact.
• Reputation Recovery: Opportunity to restore reputation.
• Transparency: All penalties recorded on Layer 0 Blockchain.