Vitalik Buterin Releases Revolutionary New DAICO Model for ICOs

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Vitalik Buterin Releases Revolutionary New DAICO Model for ICOs

January 13, 2018 News 0

Vitalik Buterin, the creator of the Ethereum Network, recently proposed a new method for decentralized fundraising called the “DAICO”. Incorporating elements of Decentralized Autonomous Organizations, or DAOs, the new model is designed to minimize the complexity and risk associated with ICOs. Buterin outlined the new model in a post on the Ethereum Research Forum entitled “Explanation of DAICOs”. In the exposition, the Russian-Canadian programmer outlines a new model that integrates characteristics of DAOs into ICOs to create a new model he refers to as the “DAICO”. The post includes a diagram that breaks down the benefits of bringing DAO elements into an ICO, including the ability to leverage crowd wisdom, the distrust of centralized teams, and the ability to spread funding over time. The DAICO model also incorporates the single-project approach of the ICO model along with a lack of a 51% attack risk. Improving the ICO Model Buterin’s proposed model could greatly improve the traditional structure of an ICO and eliminate the risk of resources being used in an inappropriate manner by ICO creators for personal gain. The “DAO” in “DAOICO” refers to a Decentralized Autonomous Organization that is governed by a smart contract. By leveraging the beneficial aspects of the DAO model, Buterin argues that the cost of using Ethereum could be greatly reduced while at the same time placing a stronger emphasis on developer results: A DAICO contract is published by a single development team that wishes to raise funds for a project. The DAICO contract starts off in ‘contribution…
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