The world of cryptocurrencies and ICO has replenished with the new term “DAICO”, let’s find out what it is.
DAICO is a decentralized sutonomous public offering of tokens. Similarly to ICO, during DAICO tokens are sold by the project team for cryptocurrency. In the future, they can be used within the project itself, exchanged or sold on exchanges.
How does DAICO differ from ICO?
DAICO is a new fundraising model that combines the classic ICO and the benefits of DAO (decentralized autonomous organizations). Thanks to this model, the process of collecting and spending funds will be able to become as safe and transparent as possible.
How does DAICO work?
DAICO works based on the smart contract governing all actions for attraction of investments and work with them. Token holders receive enhanced control functions and can, for example, temporarily block the free sale of tokens after the completion of their public sale or determine the monthly amount of payments to the developers of the project. At the same time, in the case of DAICO, only the development team works on the project, not everyone (as in the case of the classic ICO).
Keep in mind that DAICO is not project management, but only control over the amount allocated to the project team beyond the limits set by the budget. DAICO contract excludes the possibility that the team may write off all funds at one time and disappear, protecting the interests of token holders. In addition, if holders feel that developers are not performing their tasks, they may initiate a refund.