Token Description & Project Background

District0x provides open-source infrastructure designed to facilitate the creation of decentralized marketplaces and communities known as ‘districts’. These districts can be easily created and customized by developers, who have the option to choose from various user interface options and incorporate plug-ins that offer tools such as advanced search and filtering capabilities, payment collection and invoicing features. 

Each district created on the platform is unique to its respective community, and the decisions and parameters set within each district do not affect others. One of the early districts launched on Distrix0x was ‘Ethlance,’ which serves as a platform for individuals and companies to discover and hire freelance talent. Ethlance differentiated itself from competitors by offering a fee-free service and providing a diverse range of opportunities.

The platform’s native governance token is DNT. Token holders have the power to vote on the selection and deployment of new districts. Additionally, users can stake their DNT tokens to acquire voting rights within any district operating on the District0x network. 

District0x was founded by Joe Urgo and Matus Lestan. Lestan brings eight years of experience as a freelance developer, while Urgo has worked as an Operations Manager at Coinbase, a Derivatives Trader at Three Arrows Capital and a Professional Poker Player. 

DNT was launched in 2017 through an Initial Coin Offering (ICO) raising approximately US$9.78 million in funding. 

Risks of DNT

Like an investment in other crypto assets, there are some general risks to investing in DNT. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in DNT is subject to the following specific risks:

• DNT operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. Furthermore, the project’s future trajectory hinges on the decisions made by a global community of DNT token holders. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with DNT. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The DNT community and the aforementioned founders are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of DNT have no recourse to DNT community, or Uphold if DNT declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing DNT on the Uphold Platform, Uphold performed due diligence on DNT and determined that DNT is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of DNT, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of DNT.
• Any marketing materials put forward by the DNT social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with DNT, including any code defects, security breaches and other threats concerning DNT and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with DNT, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of DNT. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.