Raising ICO Standards

[viniciusfbm]

I've been thinking about some ideas around how to create an ethical ico for a while although I was coming from a slightly different angle.

Top of the list was the idea of having a smart contract that is programmed to release funds along a schedule, based upon project milestones being achieved. Initially I was thinking that the tokens attached to an ICO could vote to delay/speed up such a schedule (thus empowering investors) but then I wondered if technically this could create issues with the SEC (would token holder's hold technical shares)? Lo and behold we get the annoucement from the SEC this week and I'm having to reformulate ideas. Where are you planning to base your ICO? Switzerland?

It makes sense , but you will need a static roadmap, it is quite possible for short-term but not for long-term. What would you do if a new opportunity arise that is clearly more profitable ? For example: All clients/users start asking for the same new feature that wasn't on the roadmap.

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[CarnagexD]

I think the last point (the vesting) is very important. It makes the team more committed.

The biggest drawback of the first point is unexpected events. What happens in case you need more funds than planned?

the team should be committed in this project and they should be always hearing out opinions coming from the community I think give and take between dev and the supporters will make this project successful I'm sure the idea will be supported if the team will be more serious to get in touch with the investors.

With a successful ICO project comes with a great people behind it. For sure an ICO is gonna be successful if the team behind it is passionate and well-connected to the project. If people wanted to invest in such ICO project they need to raise standards especially about the projecr and the team behind, if it is legit, safe, and if the people are willing to answer one's uneding questions about the project given.

It's just right for a person to raise some standards upon investing in such ICO projects because it's what theirs are going to be at risk here. For a ICO project to be successful for sure it will have a great team behind it. A team that can a answer all unending questions a person want to know about the ICO project they are going to launch and to share ideas and knowledge about it. And if it can stand the the project will be a legit, safe for people who are going to invest and will be showing some successful sides of it.

[yillusion]

i think the ico must have a threshold, it can be doing some product first or hold their own money for initial develop, some scam ico are just to raise money with a white paper or ppt

[XbladeX]

i think the ico must have a threshold, it can be doing some product first or hold their own money for initial develop, some scam ico are just to raise money with a white paper or ppt

Depends what for is your ICO most ICO is about getting your cash from you and your buisness plan is pointless.
There is no money in the world that can not be wasted for real guys.
Sad part is  in curret stage ICOs are joke only paid milestones are way to go to me 

[Emadm]

Continuous raises make sense, or gradated ones, but the temptation of whales proves too much for many private companies.

[xiaohang07]

"We will publish our crowdsale contract address in advance, minus the last 5 digits, so there is no chance of funds being sent to an incorrect address." I really like this idea, which could be a very cost-effective way to prevent the potential website hack loss.

[mamaya]

"We will publish our crowdsale contract address in advance, minus the last 5 digits, so there is no chance of funds being sent to an incorrect address." I really like this idea, which could be a very cost-effective way to prevent the potential website hack loss.

Which has been done by others in the past, or even publishing the full address a few hours or a day in advance, the smart contract can always reject transactions that come in too early.

Not publishing it in advance is just an amateur move in my opinion and I hope ICOs start considering this much more.

[JeffBrad12]

Hello guys, we are currently working in a smart contract powered pension fund platform, and studied how we could improve our ICO.

What do you think about using the following rules, do you have any suggestion to improve it? We will publish it on github and if community support it, it could become a standard for next ones.

Main Points:

• ETH Locked through smart-contract, the funds will gradually become available based on Auctus business budget plan.
• Smart Contract source will be published well in advance, this will allow potential investors to audit the contract.
• We will publish our crowdsale contract address in advance, minus the last 5 digits, so there is no chance of funds being sent to an incorrect address.
• Team will have 2 years vesting with 6 months cliff.

But I have a question for your idea. What is that? And how it works? In the real life, the pension platform used the system that the worker must do dues since long time ago. And another worker too, it just like insurance.
But you have a responsibility to distribute it to the pension worker.
Like above me said your business is pointless. I don't think that will work.
Basically, the project must generate its future funds from the result of the development and not by using the funds from the investors. That makes you are no need to make a lot of money through ico.

[olushakes]

Hello guys, we are currently working in a smart contract powered pension fund platform, and studied how we could improve our ICO.

What do you think about using the following rules, do you have any suggestion to improve it? We will publish it on github and if community support it, it could become a standard for next ones.

Main Points:

• ETH Locked through smart-contract, the funds will gradually become available based on Auctus business budget plan.
• Smart Contract source will be published well in advance, this will allow potential investors to audit the contract.
• We will publish our crowdsale contract address in advance, minus the last 5 digits, so there is no chance of funds being sent to an incorrect address.
• Team will have 2 years vesting with 6 months cliff.

This is a good idea if implemented that it would bring some level of sanity into the game but the issue is about adoption because there is no way to force compliance with this because there is no central body to do that for those interested in raising ICOs and even if the forum admin should adopt (which is higlg unlikely) there are other forum or platforms to make it happen thereby limiting the effectiveness of the control.

[viniciusfbm]

Hello guys, we are currently working in a smart contract powered pension fund platform, and studied how we could improve our ICO.

What do you think about using the following rules, do you have any suggestion to improve it? We will publish it on github and if community support it, it could become a standard for next ones.

Main Points:

• ETH Locked through smart-contract, the funds will gradually become available based on Auctus business budget plan.
• Smart Contract source will be published well in advance, this will allow potential investors to audit the contract.
• We will publish our crowdsale contract address in advance, minus the last 5 digits, so there is no chance of funds being sent to an incorrect address.
• Team will have 2 years vesting with 6 months cliff.

But I have a question for your idea. What is that? And how it works? In the real life, the pension platform used the system that the worker must do dues since long time ago. And another worker too, it just like insurance.
But you have a responsibility to distribute it to the pension worker.
Like above me said your business is pointless. I don't think that will work.
Basically, the project must generate its future funds from the result of the development and not by using the funds from the investors. That makes you are no need to make a lot of money through ico.

This topic is just about ICO, to understand our business model you would need to read our medium post and you can find even more details on our whitepaper draft, i couldn't understand you very well, but please user our ann if you have any question about it.

[cocoinin]

Thanks for this topic! Thanks for your effort!

And I really love the idea to publish address some days or weeks before. That's really smart.

Will watch your progress. Good luck!

[hackg]

How about instead of releasing coins periodically regardless of achieving your projects plans, set milestones, goals and the coins are only released if you achieve them?

People are afraid the hard work won't be put in, and receiving the $ regardless removes motivation, inspiration, and can allow "bare minimum" effort to get by. If you demonstrate not only to the investors, but also to yourselves, that you won't be rewarding yourselves until you have achieved your goal, then thats some integrity right there

[viniciusfbm]

How about instead of releasing coins periodically regardless of achieving your projects plans, set milestones, goals and the coins are only released if you achieve them?

People are afraid the hard work won't be put in, and receiving the $ regardless removes motivation, inspiration, and can allow "bare minimum" effort to get by. If you demonstrate not only to the investors, but also to yourselves, that you won't be rewarding yourselves until you have achieved your goal, then thats some integrity right there

How could you do it with smart contracts? it would require a static roadmap

[cocoinin]

How about instead of releasing coins periodically regardless of achieving your projects plans, set milestones, goals and the coins are only released if you achieve them?

For a company it may be crucial to have a possibility to spend additional funds in tough times.
Without some money reserve a company can literally die.

So for investors better to allow company release more tokens and make possible to change roadmap.
To make this kind of decisions investors have to have an access to company's private info and even secrets. =)

Up to me - it is not possible if ICO tokens owners remain anonymous. Because otherwise company cannot protect itself from information leaks.

[The_Dark_Knight]

You miss one thing, you should make execution of the project in the short future time. There are many ICOs execute their roadmap in the end of 2018 even in 2020. I think the coin will be forgoten or Investors will recognize scam ICOs. It is better to be ready a test net web application before launching ICOs.

I think this is a relevant point, an ICO that ask money and that has nothing to show for is suspicious, and whatever they are trying to accomplish is going to take a lot of time, instead if they have a beta about what they want to accomplish then that will make the ICO a lot more successful since people will know they are investing in something real.

[viniciusfbm]

How about instead of releasing coins periodically regardless of achieving your projects plans, set milestones, goals and the coins are only released if you achieve them?

For a company it may be crucial to have a possibility to spend additional funds in tough times.
Without some money reserve a company can literally die.

So for investors better to allow company release more tokens and make possible to change roadmap.
To make this kind of decisions investors have to have an access to company's private info and even secrets. =)

Up to me - it is not possible if ICO tokens owners remain anonymous. Because otherwise company cannot protect itself from information leaks.

Yes, it sounds perfect, but you would need that all investors follow closely enough to vote on each roadmap milestone.

[The_Dark_Knight]

I've been thinking about some ideas around how to create an ethical ico for a while although I was coming from a slightly different angle.

Top of the list was the idea of having a smart contract that is programmed to release funds along a schedule, based upon project milestones being achieved. Initially I was thinking that the tokens attached to an ICO could vote to delay/speed up such a schedule (thus empowering investors) but then I wondered if technically this could create issues with the SEC (would token holder's hold technical shares)? Lo and behold we get the annoucement from the SEC this week and I'm having to reformulate ideas. Where are you planning to base your ICO? Switzerland?

It makes sense , but you will need a static roadmap, it is quite possible for short-term but not for long-term. What would you do if a new opportunity arise that is clearly more profitable ? For example: All clients/users start asking for the same new feature that wasn't on the roadmap.

Exactly, a road map is just an approximation of how long something is going to take and about what you want to do, but if you can achieve something even better, or if people ask for something different then the road map can be changed to accommodate those new circumstances.

[TastyChillySauce00]

I think there should be some escrow for the funds raised from the ICO, for example a third-party escrow, many investors think it is important for evaluating the risks of scam.

The use of smart contract itself acts enough as an escrow but only to make sure that the users who invested their money into the project have their token, about the use of the funds, maybe someone reputable could take care of it. Otherwise, there'll be a misuse case of the funds which were raised.

[viniciusfbm]

I think there should be some escrow for the funds raised from the ICO, for example a third-party escrow, many investors think it is important for evaluating the risks of scam.

The use of smart contract itself acts enough as an escrow but only to make sure that the users who invested their money into the project have their token, about the use of the funds, maybe someone reputable could take care of it. Otherwise, there'll be a misuse case of the funds which were raised.

Yes, but even with an escrow there is no way to deal with this problem, so we are working to build trust showing how hard we are working to really deliver what we promise. thanks for your feedback

[limmousine]

I think that's good enough, but I suggest you make a special team that is always active in social media. So potential investors and dev can communicate directly.
You can start by creating a telegram and slack group.