Bitcoin Forum

​​Vitalik Buterin suggested replacing current ICO

The founder of the Ethereum Blockchain platform, Vitalik Buterin, proposed a new model for fund-raising for start-ups with the help of Blockchain technologies instead of the usual ICO. Buterin called the proposed DAICO mechanism, since it should combine the features of ICO and the decentralized autonomous organizations (DAO).

The main the idea is that the development team which is looking for funding issues a DAICO contract. In the "donation mode", anyone can send to the ETH contract  address and receive tokens in return. The deal can be in any way: it can be a sale with a cap, a Dutch auction, an interactive offer of coins, dynamic sales under the rules of KYC or any other mechanism. Once the term of contributions is completed, users can no longer contribute ETH. From this moment, the balance of the initial tokens is determined, after which they can be traded.

According to Buterin, such model protects the interests of project investors, allowing to reach a consensus within the community on the share that developers can deduce from borrowed funds for their needs. Also, according to Buterin, this will create a reliable defense against the attack of 51%, when most of the resources are in the same hands.

Earlier Buterin repeatedly criticized the current mechanism of ICO, as it is used primarily to attract as much money as possible, and not to create useful developments.


Courtesy- ICO and crypto news

so, can be this article answer that Vitalik already find solution of Slow Network in EtH?

Vitalik Buterin has been very vocal and consistent in recent time, in his criticism on the way and manner start-ups go about collecting huge amount of money from the public without having solid plan and product on ground. His criticisms and suggestions are welcome but will the community listen and do something to save the ICO market from scammers and opportunists.

Should be that way from the begining, its simple and easy. Also safer, cause the token send right away.

what we really need now, is a solution to tell the scams in ICOs

This a good step to regulate these scam ICOs,we need transparency with our investment and yes he is right we need to change how ICO works to prevent losses in failed projects.

Realy? and what about slow transaction in Ethereum network. And cost of token transaktion in this net?

I fully support this proposal. This is an extremely necessary evolutionary step, in particular it can help in the legalization of the ICO in the countries in which it was banned or intended to be banned.

vitalik began to talk with some sense.

Hey, everyone! I recently came across this interesting thread on reddit: https://www.reddit.com/r/Cointed/ It is about an upcoming ICO project called Cointed. The company behind recently stroke partnerships with Nvidia and TAS Group, which vouches for the credibility of the project. Additionally, the potential and, in turn, the ROI seems high. Any speculations?

For investors, certainly interesting information, for bounties - has not yet figured out. If nothing changes but the reliability of payment for the provided bounty services, then I will.

Vitalik Buterin is a very good and known person in here, but let's be honest, this guy is just 21 years old, we all know that the has been very smart, he created a multi billionaire cryptocurrency, and he can create as many as he wants, so his money is almost unlimited.

Anyway, he can not decide over everything, i dont know why the fuck he wants to do it.

Is he high? or what is wrong with him? The real situation that ICO's are passing right now is a really good one, i dont see why you want to replace that.

Yes indeed ICOs need to change on how they are raising funds,compulsary donations would be a good idea and there will be less scam ICOs.

This will be a great idea then the Investors security will also be increased

This what ive been waiting for someone with voice will talk about these crap ICOs that are raising too much and then scam all of the people who invested them.

Buterin first of all should solve problems with the ether network, and then think about new ICO))) But I'm glad that this person is working on improving various projects and has already made a huge contribution to the development of the crypto market.

This change only aims to reduce the scams in the ICO. Feasibility is still based on the ability of the dev team. The DAICO model does not assess the potential of the project. EOS is the first ICO auction

I don't really know if its gonna work that way. Locking ico money may create stress for good developers to complete milestones quickly (low quality labour) and that would make icos lot less worthy. Its better now in my opinion.

Vitalik play to the fact that developers will start to use other platforms. With these already good WAVE and NEO. But not a bad idea, let's see what happens.

The idea sounds not bad, at least it can filter most of the scam ICOs. At the moment Im really tired of hearing new ICOs everyday because you never know if they are real or not.. Lets wait for this new idea to be realized

I know everyone want this world to be decentralised but I'd like to see someone to actually hold the money for duration of the ICO and pay to the devs once it's completed. I think Binance is doing something like that to protect investors money they call it Launchpad I believe. I think it's good, too many scams out there.

DAO is the future (hopefully). Although the reason Ethereum doesn't have a great DAO system is because in reality no one wants to give up the power and control. Why aren't more corporations employee-owned? It's not because employee owned companies make less profit (quiet a few are extremely profitable). Most owners who are willing to invest their time and money also have huge egos, that is why they are willing to take such a huge risk. They also want all the reward, even if they don't care about the money per se.

Yes, I read that Vitalik wants to go further and establish a control over how be spent and where the investors' money is used for. It is not clear how he wants to do this. But his ideas are far-reaching. And this will definitely be a new stage of development in ICO. Investors will be protected from the scum and may receive some sort of control over the expenditure of money not for their intended purpose, but for personal purposes.