Hey all,
I'm sort of new to this forum but been following a long time after blockchain development and the token economies.
Seems as 2018 have brought a lot of troubles for many investors and left many people with a lot of losses, without the option to retrieve them or see them again, and was left (in the best scenario) with an unusable token.
I must say that I fell in love with the DAICO concept when I first heard of it, These who are not familiar with this conception - I really suggest to read about it.
The latest project I came across was also the neufund which offer a solution of making the tokens as equity tokens and close this gap between investors getting hurt and the scam companies as they need to register the tokens as ETO's.
During 2017 and 2018, I came across many projects in the crypto sphere that are finishing their fundings in the pre-sale stage with unbelievably high hard caps, which also leads to a very small community behind the whole project in the first place. and making a really big PR promotion in order to help the early investors to sell their tokens with profits without actually progressing with the development of the promised end product.
So what do I suggest?
So my suggestion to the community is a concept a "Proof-Of-Establishment" protocol for the crowdfunding process and the activity after the exciting tokens distribution.
What does it mean?Pretty similar to what the DAICO conception been offering - the idea behind Proof-Of-Establishment protocol will be voting based decision mechanism by the community.
How will it work?Let's take for example that the ICO has ended and managed to crowdfund 1500ETH, and tokens were distributed between all of the participating community.
In the current state of the market, The community can start selling the tokens, and the Company behind the ICO can use all the funds that they have gathered during the sales stages.
The "Proof-Of-Establishment" concept will contain within the creation of the Token contract a unique wallet which will be limited - Sort of "lock per period" mechanism which will be transparent for the investors, which will do aggregative And will have basic rules of :
- The amount that can be used during a specific time period, This goes for both ways for investors and the company as one, each one gets his part over the time and not all at once.
- Voting of the community if to allow the 2nd wave and next waves of funds to be released for the company usage
- "Not Productive" option as I like to call it, which will be based on the vote of 65% (Always open for other suggestions for this part) of the community that was participating in the first place which will cancel out the whole project and will retrieve the left investment balance back to the investors, and the Tokens back to the company.
What is needed to be solved?- Trust between the ICO's and the Investors of the use of the fundings.
- Backdoor exit in case that the project is failing
- Reduction in Pump and Dump due to investors who hold big amounts of the coins
Could be great to hear more opinions and thoughts on the subject
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