Compliance

Compliance measures form a critical part of the AVT infrastructure. Signed terms and conditions by employers and candidates will underpin a system of self-compliance/governance which will be verified at various points within the system. This will preserve the integrity of key issues such as point of hire, statutory and taxation obligations, benchmarking minimum pay and conditions, and OH&S obligations. Registration and verification of identity will be rigorous and thorough. It is essential that anything involving the employment space must withstand scrutiny by regulators in key areas:

i) Industrial Relations

A comprehensive, up to date global workplace awards library will be embedded in the system. This will provide guidance on given employment categories and jurisdictions, no matter where in the world. This is designed to protect employers and employees alike from industrial relations exposure, exploitation, or disputes. Robust IR safety nets will represent an important component of every smart contract generated. All smart contracts will be system permissioned subject to acknowledgment, acceptance, and declared compliance to all relevant industrial relations frameworks.

ii) Statutory Obligations

Statutory obligations relevant to a candidate’s point of hire will be acknowledged and accepted as a precursor to every smart contract to ensure compliance. It is required practice that the employer, in addition to handling various statutory obligations, withholds tax on behalf of employees. An AVT earnings however are not limited to hourly rates from job assignments. Detailed, system generated earnings summaries will be made available to reflect all earnings on AVT, verifiable on the blockchain for presentation and assessment by tax professionals. This information will be live, which will allow community members to quarantine funds appropriately. By selfmonitoring earnings summaries, participants can plan from a budgetary perspective. This will be a completely voluntary feature that will allow for forecasted tax obligations to be withheld in an AVT wallet or diverted to another nominated account should one elect to do so. This feature can be enabled or disabled at any time by the user and is offered to promote compliance and an enhanced user experience.

iii) Certifications/Endorsements

It is imperative that AVT obtains the highest recognition as a responsible and compliant corporate citizen in the blockchain space. The following endorsements/certifications have either been achieved or scheduled as priorities:

➢ CertiK Certification

➢ Economics Design Endorsement

➢ Reasonably Argued Position (RAP) on the TLNT utility token

➢ ISO 27001 Standard Information Security Management System (ISMS)

➢ Patent pending on business method

iv) Occupational Health & Safety

Many work assignments will involve physical work sites and offices as the designated workplace. In such cases, the generation of smart contracts will only be enabled when employers have submitted sufficient information to verify that minimum OH&S standards from both a corporate and a site-specific standpoint have been met and made available to the candidate. Building a safety net of ongoing OH&S compliance will optimally safeguard the well-being of workforce participants.

Consumer Protection

To register as an AVT, it is critical that rigorous KYC procedures are undertaken. Best practice identification procedures help protect the platform and its users from fraud and other financial crimes. Legal obligations and advanced security technology will preserve account information and verify the authenticity of all new registrants. Furthermore, to protect the community from ill-intentioned actors who seek to exploit the system by selling fractionalized NFTs with no intention of being a model participant, measures will be implemented to augment KYC procedures:

➢ Soulbound Token (SBT) status will represent an intermediary step to satisfy system compliance and protection, after which point fractionalized AVT status is assumed.

➢ Prescribed minimum hours/jobs working on AVT as a SBT before fractionalization and sale of NFTs is permitted

➢ Prescribed minimum time metric on AVT as a SBT before fractionalization and sale of NFTs is permitted

➢ Initial fractionalization ratios and pricing will be standardized for every AVT. Dynamic value characteristics of NFTs will only commence with activity on the system.

Consumer protection in terms of AVT verification and NFT price consistency will be a core tenant.