Are RWA the future of crypto?

In this episode of Cointelegraph's Hashing It Out podcast, host Elisha Owusu Akiau interviews Micah Yeakley, co-founder of Kula DAO – a project that aims to represent a diverse set of real-world assets (RWA) on the blockchain – about the sector's opportunities, the Web3 space and what it means for market development.

The show will also touch on other important topics such as regulation and what RWAs on blockchain mean for retail and institutional investors.

Yeakley explains that the simulation of real-world assets can span more asset types than most people expect. Although Kula began with a focus on natural resources, he quickly realized that the project could be a token for anything of real-world value, including water resources, agricultural projects, and real estate development.

Based on the different RWAs that can be modeled, Yeakley suggests that projects may benefit more when they have a different pool of resources, which is Kula's approach. He explains.

“Well, when you talk to any savvy investor, anyone who's been investing for a long time, they have experience with this. They always say differentiation is the key.

Yeakley broke “DoubleDAO”, part of the Kula DAO governance structure, which aims to bring together the best of Web2 and Web3 governance, ensuring checks and balances in the decision-making process of a decentralized autonomous organization (DAO). Double-DAO provides asset-based protection to ensure voice and participation of key stakeholders.

Double-DAO includes a “RegionalDAO” where local communities affected by the assets actively participate in decision-making.

It also explains how the expansion of the project in Zambia has led to changes in partner mining, with equal pay for women and the building of social services through the voting process.

Turning to regulation, Yeakley says projects in the sector are difficult to regulate. Kula has received pre-accreditation from the Dubai-based Virtual Assets Regulatory Authority and is set to become the first regulated RWA DAO to mine natural resources and commodities.

Yeakley believes regulation should be the first step, not the last, in a heavily regulated area of ​​the traditional financial landscape.

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This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.