DAICO: like an ICO, only better

The creator of the Ethereum cryptocurrency, Vitalik Buterin, made a considerable contribution to the development of decentralized systems and continues to do so to this day, earning the respect of the entire...

The creator of the Ethereum cryptocurrency, Vitalik Buterin, made a considerable contribution to the development of decentralized systems and continues to do so to this day, earning the respect of the entire blockchain community. One of his ideas is the introduction of DAICO instead of the classic ICO. Let us examine what it is and what the differences are between these two models.

The term «DAICO» is derived from connecting the abbreviations «DAO» (Decentralized Autonomous Organization) and «ICO» (Initial Coin Offering). It is the same as the process for the initial public offering of coins, with the only difference being that the token owners will be given the right to vote on various issues. The implementation of this idea is expected to be made possible through the introduction of smart contracts. For example, investors who are disappointed in a startup will be able to vote to return their money. Thus, DAICO is a much more flexible system that can deliver a preemptive strike on fraudulent projects whose sole purpose is to collect as much money as possible.

With the current model of financing, investors can only guess what their money is going to because they do not have any mechanism for controlling its finances. The idea of combining a DAO and an ICO solves this problem radically, putting the investor and his interests at the forefront. The advantages of this concept are indisputable, because it serves as a powerful tool for eliminating unscrupulous startups. Side effects are also important here: as a result DAICO indirectly stimulates the entry of new money into the market and the development of the economy because there are much less concerns about investing.

The first DAICO project in the world is TheAbyss platform operating in the video game market. Unlike Steam and its other competitors, TheAbyss offers a unique player motivation system that allows users to earn money by performing various tasks.