Creator Ethereum Vitalik Buterin proposed a new model ICOsteemCreated with Sketch.

in bitcoin •  10 months ago

Ethereum founder Vitalik Buterin proposed a new model of decentralized fundraising, which he himself christened DAICO. By this term, he understands the combination of the best properties of ICO and the concept of decentralized autonomous organizations (DAO).

Description of his idea Buterin published at the forum Ethereum Research.

"The idea is this: the DAICO contract is issued by one development team, which wants to raise funds for the development of the project. The contract DAICO starts in the "donation mode", describing the mechanism through which any person can send to his ETH address and receive tokens in return. This can be a sale with a cap, a Dutch auction, an interactive offer of coins, dynamic sales under the rules of KYC or any other mechanism. Once the term of contributions is completed, users can no longer contribute ETH. From this moment, the balance of the initial tokens is determined, after which they can be traded, "Buterin writes.

After the end of the fund period, the contract actually has one status parameter: tap (units: wei / sec), initialized to zero. In this case, tap determines the amount of money that the developers can output.

Also, Buterin accompanied his recording with a drawing intended to describe this model:


According to him, such a model will give more power to investors of projects, since it will allow to reach a consensus within the community as to which part of the involved developers can deduce for their needs. Also, says Buterin, this will create a reliable defense against an attack of 51%.

Let me remind you that earlier technical director Ripple Stefan Thomas in his forecast for 2018 predicted "ICO death".


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