Vitalik Buterin is recommending a new ICO model

The new ICO model that Vitalik is recommending is called DAICO. The idea of the mind that is behind the Ethereum project combines the best features of ICO and DAO. Those are concepts of decentralised autonomous organisations.

A DAICO contract is issued by one team of developers that wants to attract funds that will be used to develop a specific project. DAICO starts in a "donation mode", via the mechanism anyone can send ETH and get tokens in exchange. As soon as the donation period is over, tokens can be traded.

The DAICO model can be illustrated using the below model:

Buterin suggests that, DAICO can increase the degree of influence that investors can have on the further development of a specific project. Not to mention, the investors will have an opportunity to decide what proportion of the accumulated funds will be send to the developers of the startup.