Topic: Difference between ICO and DAICO. (Read 123 times)
I hope that this system will increase the quality of ICOs. There are too many unnecessary projects in the market.
In my opinion, the main difference is access to funds.
With ICO, after completing token sales, developers have complete access to all donated funds. Developers need to calculate in advance how much it will take to produce a minimum eligible product and once they reach this amount, called 'soft cap', they can start working on the product and spend money on whatever they think it needs to do. If they do not reach this soft cover early, they should return the money. But if they do, there is no more real obligation.
With DAICO, contributors can vote on resolutions (during the development phase) to fix faucet or return the remaining donated funds (self-destruction of the contract).
With ICO, after completing token sales, developers have complete access to all donated funds. Developers need to calculate in advance how much it will take to produce a minimum eligible product and once they reach this amount, called 'soft cap', they can start working on the product and spend money on whatever they think it needs to do. If they do not reach this soft cover early, they should return the money. But if they do, there is no more real obligation.
With DAICO, contributors can vote on resolutions (during the development phase) to fix faucet or return the remaining donated funds (self-destruction of the contract).
Recently I heard a lot about DAICO. How do you differentiate between ICO and DAICO?
You can see the difference between DAICO and ICO in the capital investment. Investors now have more rights to them. They have the right to ask the project to return their investment if they feel that the project is not good. Investors will take a vote on the withdrawal of their assets. In general, DAICO is an upgrade of the ICO and investors will have more rights. Recently I heard a lot about DAICO. How do you differentiate between ICO and DAICO?
Simple . If that project applies DAICO technology and specifies on the website then that is correct. I think DAICO is becoming widely available for all upcoming projects because if the TheAbyss project succeeds then surely this will revolutionize the ICO. I hope to invest in DAICO because if the project is fraudulent then all investors are refunded
As such, DAICO seems a new trend of capital mobilization that is more reliable, safer for such investors. The future of ETH and Bitcoin is guaranteed.
Its an attempt to give a little more power back to the investor and take away the fear many have of being scammed. I think once it becomes a trend any company not following suit will basically be outing themselves as scams. I think some self regulation would be good.
In 2017 the CIO boomed in the cryptocurrency market and to limit scams Vitalik Buterin proposed DAICO to limit this scam by allowing investors to set up a return on investment if They are not satisfied with the progress of the project. In the future, many ICO projects will be using DAICO, investors will be able to control more capital through active smart contracts.
new inovation for ICO model from vitalik self.
with a mechanism by which the token holders can vote on resolutions. There are two types of resolutions:
Raising the tap
Permanently self-destructing the contract (or, more precisely, putting the contract into withdraw mode where all remaining ETH can be proportionately withdrawn by the token holders)
for more info : https://ethresear.ch/t/explanation-of-daicos/465
with a mechanism by which the token holders can vote on resolutions. There are two types of resolutions:
Raising the tap
Permanently self-destructing the contract (or, more precisely, putting the contract into withdraw mode where all remaining ETH can be proportionately withdrawn by the token holders)
for more info : https://ethresear.ch/t/explanation-of-daicos/465
The biggest difference is access to capital. In the ICO project, when the token sale ends, the development team has absolute access to all contributions. The development team must first calculate the amount needed to produce a minimum profit product. And when it comes to what they call 'soft capital', they can begin to build products and spend on whatever they need. If they do not meet the initial soft capital value, they must repay the capital contribution. But if they succeed, there is no real obligation. With DAICO, investors can vote on the decision (at development stage) to increase the tap or repay the remaining capital (cancel the contract)
Recently I heard a lot about DAICO. How do you differentiate between ICO and DAICO?
Jump to: