Investors need more control over ICOs
At least, that’s according to ethereum creator Vitalik Buterin. One of the early thinkers to shape the crypto funding mechanism concept, he hasn’t quite put the idea aside, last month proposing it could be combined with a decentralized autonomous organization (DAO) to best allow investors to have a say in how money raised gets handled.
Flash forward to today and what Buterin called a “DAICO” is already being developed, with gaming startup The Abyss building its own version for its upcoming token sale.
“This idea found a free place in my heart,” said Konstantin Boyko-Romanovsky, the project’s founder. “We really want to make something beautiful.”
As Boyko-Romanovsky alludes to, the ICO model has been called into question for enabling entrepreneurs to raise big money without a product or platform already built. (Even Boyko-Romanovsky has gotten burned by several ICOs, which is why he believes better tech could help ensure a token’s team isn’t interested in a cash grab.)
And by adopting the DAICO model first, he also wants to show investors that The Abyss is truly about disrupting platforms for selling video games (like Valve’s market-leading site, Steam) by making the promotion of video games more flexible and delivering more money to developers.
Still, while the concept will get a test run with The Abyss project, others are skeptical it will be widely embraced.
First and foremost, like ICOs, the DAO concept has a rough history, since the first DAO had a vulnerability that allowed a “attacker” to transfer $60 million worth of ether to themselves. (The consequences and uneasiness of the fallout still reverberate throughout the community.)
Read full article: https://www.coindesk.com/vitalik-new-idea-icos-tested/