In the advent of initial coin offerings, the wide range of applications for these ICOs go fast from charitable fundraising to outright fraud. Hence, the founder of Ethereum blockchain, Vitalik Buterin, suggested upgrading the ICO concept by merging in some of the benefits of Decentralized Autonomous Organizations (DAOs), but doing so in a way that minimizes complexity and risk.
This is exactly the opportunity that The Abyss, the next generation digital distribution game platform, had decided to tackle as it announced its aim to a pioneering DAICO. The Abyss Token Sale shall represent an advanced and improved ICO mechanism, allowing contributors to control the withdrawal of the funds, while also providing an option to shut the project down and refund the contributed money in case the team fails to implement it. It’s a very fail-safe way of executing ICOs.
“DAICO provides tangible solutions to the ever-changing security needs and puts transparency at the center of innovation. We are confident in our capability to implement and improve Buterin’s idea. Our DAICO will be the perfect bridge between fundraising and team motivations control,” said the founder of The Abyss platform, Konstantin Boyko-Romanovsky.
The DAICO model will allow for refunds and raised funds withdrawal control by contributors. By definite design, DAICO minimizes the risk of fraud. In turn, The Abyss offers an improved voting system with Oracles acting as arbitrators when it comes to the project closure and refund.
“DAICO is a new mechanism, and there should be ways to further strengthen it while maintaining flexibility, transparency, and security. Oracles and exclusive voting rules will do the job efficiently and reliably. Only project’s token holders will be granted a voting right. Controlled by the Smart Contract, the Company’s and Reserve tokens will not be eligible to participate with. We will utilize the proof-of-stake algorithm during the polls, but to make it impossible for the exchanges to take part, the weight of each Ethereum-wallet’s vote will be limited by a certain amount of tokens,” added K. Boyko-Romanovsky.
The Abyss team is sure that DAICO is an excellent option that will make fake ICOs almost impossible. However, it is a relatively new mechanism, and there should be ways to further strengthen it while maintaining flexibility, transparency, and security. Oracles and exclusive voting rules should do the job efficiently and reliably. The team is still pondering over further improvements and is open to creative discussion. The Abyss DAICO is scheduled on February 7, 2018.
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