Vitalik Buterin proposed to abandon ICO in favor of a new model of fundraising
About its features programmer told the forum Ethereum Research.
According to Butcherin, DAICO can combine the best properties of the primary location of tokens and the concept of decentralized autonomous organizations (DAO). At the same time, the process of attracting investments will be simplified, and the risks will decrease at times.
"The idea is this: the DAICO contract is issued by one development team, which wants to raise funds for the project. The DAICO contract starts in a "donation mode" with a mechanism that allows any person to send ETH and receive project tokens in return. The team can choose any mechanism: sales with a cap, a Dutch auction, an interactive offer of coins, dynamic sales within the rules of KYC. When the term of contributions is completed, users can no longer contribute ETH. The balance of the initial tokens is determined, and they can be traded. "
Buterin accompanied the description of DAICO with a drawing that describes the work of the model. According to him, ICO is not a safe way of investment and has a number of shortcomings. DAICO will be able to protect investors' funds: they will be able to observe how the project develops, and withdraw their investments if they remain unhappy with the result.
Buterin had criticized ICO before: in September he told the Israeli newspaper TheMarker that he considered the market to be unsustainable. Buterin warned that the primary location of tokens, despite all its advantages, allows scammers to raise funds and disappear. At the same time, the market is too young, so there is as yet no sure way to distinguish a promising project from a failed one.