Bitcoin Forum

New project that I'd like to share with the community and get feedback on: the ICO Governance Foundation.

I've been working with a few people - Miko Matsumura from Pantera Capital, Dr. Fred Krueger of Troop, Michael Golomb, others - to spin up the IGF in an effort to clean up the ICO market. This is in response to a lot of the things that we've been observing in public ICO operations, the regulatory action around the world, and what we've heard (privately) from people inside and outside the space.

From our website, https://icogovernance.org/ (https://icogovernance.org/): "The early ICO industry is rife with hackers, scammers and opportunists. The ICO Governance Foundation (IGF) is an international organization and Swiss Foundation whose mission is to protect global ICO investors and facilitate capital formation for ICOs. To support this mission IGF provides and maintains an open source voluntary public filing and registration protocol called Form IGF-1 as well as a public registration database that performs automated collection, validation, indexing, acceptance, and forwarding of submissions. IGF works with national regulatory agencies to establish global best-practices and standards for ICOs that complement national regulatory organizations such as the SEC, ESMA, CSRC, MAS and others. IGF-1 provides transparency of the token sale custody chain and distribution of ICO proceeds. The foundation and these standard protocols are part of a Global Public Utility and industry self-regulatory function that is needed to align stakeholders and to improve the volume and flow of capital incentives for ICOs from institutional-grade investors."

Essentially three core functions:

• Whistle-blower reports, to notify the community of poorly governed ICOs
• An IGF-1 filing and registration, to create a standard set of information that each project needs to provide publicly
• Custodial agreements. To ensure that benchmarks and milestones are achieved, ICO proceeds are distributed in accordance with a set roadmap

Our whitepaper digs in deeper: https://icogovernance.org/wp-content/uploads/2017/08/Governance-of-Token-Sales-in-Decentralized-Capital-Markets-0.5.pdf (https://icogovernance.org/wp-content/uploads/2017/08/Governance-of-Token-Sales-in-Decentralized-Capital-Markets-0.5.pdf)

As we prepare to formally launch, I thought it wise to share with the community and gather feedback.

What do you think?

ICOs are both centralized and rely on trust and therefore go against the basics of crypto by design so the only cleaning up is to discard ICOs altogether.

Isn't the whole point that we're de-regulated and that the free market will weed out the idiots?

What makes you guys the ones to do this? What's the greater membership structure / does leadership potentially change?

Great idea. Sorely needed. But if this is going to be a standard, we need some protection against this being run by a special interest group!

Unfortunately, there are a lot of scamcoins - this is (as I understand it) the basis for the Chinese regulatory action. It is my belief that the presence and prominence of an organization like this would help address a lot of the concerns.

If, for example, the community came to expect that every token sale featured an IGF-1 filing front and center, we would force everybody to disclose their allotments, team, etc. which are often pieces that can be masked/dodged all-together due to a lack of uniformity.

We're not a strict regulatory body.

This will not fulfill compliance requirements in any of the countries. Probably not even in Switzerland itself.

I'm smelling the experience from your post sir. This is the reality that thousands don't see somehow. They think ICOs are the part of blockchain ecosystem, yet they're are 100% centralized things.

This is not consistent with crypto.

The goal isn't to fulfill compliance requirements, it's to raise the bar and set a base level of standards. As we say in the intro, we'll establish best-practices and standards to compliment national regulatory organizations.

Then what is the point? Everyone already publishes white papers and people can make their own judgements.

Are you going to certify ICOs that meet your base level of standards? Will you have insurance to back you up if it turns out an ICO you certified is actually bogus? Or will your certification just be a recommendation similar to the AA and AAA ratings companies like Moody's issue?

Missed this a first read. Hmm. So basically someone wants to speak on behalf of all crypto issuers and make rules for them. Interesting indeed.

I'm not sure if you've seen this happen - I sure have - but there's a lot of "me too" and FOMO-based buying activity. People see something pumped up enough in advance of a small window sale period who jump in without a proper vet.

Of course, that's their money and their decision. But we'd like to have an easy two-page form that summarizes all of the pertinent details. That's the point of the IGF-1, which I've helped build.

Insurance won't be necessary - it's more of a ratings system when it comes to the IGF-1.

The "premium" certification, where we hold ICO proceeds and release based on benchmarks, may require something like that but I'm not directly involved in that end of the IGF.

I like your idea and this group also reviews ICO's? Before it is open to public, will you evaluate it first if it is good to invests? I have we have this kind of governing body that screened and approves ICO.

The goal is not to make purchase recommendations or suggestions - rather, just to warn of potential issues, offer a standard set of information (so token-issuers can't play games with what they show/don't in a white paper) and offer a platinum certification for those who are willing to lock up their ICO proceeds to be released in accordance with benchmarks. Subtle but important difference. :)

Excuse me, do you think that will be able to control ico? It is not possible, they keep the money in bitcoin, and therefore their money should not be frozen more than you can hold them accountable ? You do not even have power.

No. For most, this is simply a reporting and standardized listing arrangement - to prevent token-issuers from playing games in their whitepaper where they dodge the important questions. To receive our stamp of approval, you need to share a standard set of information.

There is custodial agreement option for our top-tier of approval, in which the ICO Governance Foundation holds ICO proceeds and releases them based on meeting certain benchmarks and milestones. Like I said - I'm not involved in that part directly.

Sounds like a plain market service to me.

But this is still free-market.  I'd much prefer this as opposed to a government regulated organization; as soon as the government steps into crytpo it'll be all about centralizing power and control.  This solution would still allow ICO's outside of the Governance Foundation but you'd have much more confidence if an ICO had their stamp. 

Many of the voices here are calling out ICOs as anti-thetical to the core essence of cryptocurrency, that being decentralization. But it isn't really binary is it? Sure some ICOs could maintain complete control, but isn't there a lot of grey area -- can't an ICO be built with transparency and decentralization in its model?

Good idea to have kind of our own SEC ,behind of all that problems are raising amount of scams,shiticos,money laundering,finally all that scam ico's may kill all ico's and we will all lose.I am sic of word decentralization
Now will be even  decentralized Jesus ico

I am positive about your inintiative,please post regular updates

ya lot of gray area of ico sometimes make us doubt whether the ico is a good ico or just a bad ico who funding the money for bad thing. i think to make cryptocoin to be accepted by society is to make a regulation that fair enough with blockchain technology.

great idea and approach.
several issues to consider though:
1) i bet you need to choose a non-profit foundation for you offline set-up. Swiss may seem appropriate but a bit expensive.
2) there is a huge demand for ICO governance in Russia and Western Europe (with many top-30 ICOs). should you need to promote the idea on that market, would be happy to assist
in any case - good luck with the project

Whistle-blower reporting is a very good step. But whistle-blowing usually technically is from within the organisation, so it means from the ICO company or project right? You should not work on a system itself, but provide education and means for them to speak out. But this is not going to happen much I can tell you now. Most rigged ICOs are closely knit

A better system is to get people to help build basic due diligence kit.

I too have opinion that cryptocurrency is the synonym to freedom and blockchain should be the vessel to it.
There are and will be many good and bad practice in the field and this is how it matures.
Trying to regulate won't make much difference.

Great idea! We will use it in our upcoming ICO.

then what should we do if ico will be discarded, in what way we will invest. do you think we should follow bounty campaign or what?

How IGF will earn income and generate profits a higher than average return on investment?

Your primary revenue source.

Marinecoin ecosystem is designed to be able to protect itself.it is a fair crypto coin that will be handed out evenly among paricipants of the ICO to give it true value.MTC is a dev-less time dilution technology which has been tested over time and has stood the the tests of time.  You can refer to them and join ico at http://marineco.in its dev-less and time tested , iot join proof of promotion.They say they will use AI for machine to machine (not sure what this means) transactions.

Very interesting here is of course history and idea, I think that such things will be very useful, but in general I can say that it is necessary for people who invest, because now there are very, very many scammers in the crypto-currency sector.

In my opinion controle ICO need through programming but not another one middle company like that.

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