DAICO vs ICO. What is DAICO? How DAICO better than traditional ICO?

What is DAICO?

Proposed by one of the most brilliant faces of blockchain technology today is Vitalik Buterin, founder of Ethereum, DAICO can be seen as a model of modern decentralized capital investment.

#DAICO is a word association between the Decentralized Autonomous Organization (DAO) and the Initial Coin Offerings (ICO). DAICO helps to put in place more stringent management rules for ICO projects to avoid risks for investors, through rigorous rules. DAiCO allows token holders to vote for reimbursement of contributions if they are dissatisfied with the development process of the project development team.

With DAICO projects, the developer team will be subject to a degree of responsibility to the investor and helps the token owners to be more secured and guaranteed to be product of minimum profitability or to be refunded.

There are three main elements that DAICO derived from the #DAO:

- First, never put absolute trust in a centralized team. Capital contributions from the beginning were determined by the electoral system.

- Secondly, capital accumulation is not spent in one time but by a mechanism of spending money gradually over time.

- And finally, the opportunity to refund the capital contribution. This decision is based on ‘crowd consent’, which means that investors may vote to withdraw the remaining funds if the project team fails

2. How does DAICO work?

The DAICO starts similarly to the ICO, which allows the project team call-up investors to send Ethereum to the #ICO into DAICO and the investors still receive the project tokens as normal. After the expiry date of the ICO sale, the tokens can be traded. Nothing new at this point.

The difference that DAICO creates is in the sequel, after the calling phase, when a special mechanism, called TAP, is put into use. TAP allows the investors (who are holding the tokens of the project) to control the capital employed by the project team (financial control). In the current ICO model, there is no such mechanism, so the project team wants to use how much money is used, can not control. But at DAICO, the amount is controlled, according to two conditions: the amount provided in each TAP and the number of TAPs.

If the project team wants more capital to recruit, expand… they must ask for TAP. Investors will vote and will or will not have a TAP based on votes. This helps the DAICO investment community to manage their investments and understand what their money is used by the investment group.

3. What is the difference between DAICO and ICO?

The biggest difference is the accessibility to capital.

- In ICO projects, when the token sale ends, the developer team has absolute access to all contributions. The development team must first calculate the amount needed to produce a minimum profit product. And when they reach the so-called ‘soft capital’, they can begin to build products and spend on whatever they need. If they do not meet the initial soft capital value, they must repay the capital contribution. But if they succeed, there is no real obligation.

- With DAICO, investors can vote for the decision (at development stage) to increase TAP or repay the remaining capital (cancel the contract).

4. What are the advantages of DAICO in comparison to traditional ICO? How DAICO better than traditional ICO?

DAICO allows investors to control the capital more closely. Special powers of investors participating in DAICO is that they can ask for a vote to cancel DAICO and withdraw the remaining funds, in case they are not satisfied with the project. If the project team is doing well, they will receive the next TAP from the investment group to continue pursuing the new objectives. Conversely, if the project team is stagnant or has a signal of fraud, investors can withdraw the remaining balance immediately to no loss.

Investors have a major role and influence in the development phase of the project. If they are not satisfied with the progress, they can set up a revocation and repayment contract. This completely reduces the risk for investors against ICO, no longer the case where the development team held the token sale and then hug the money disappear as soon as the ICO ended without building any products. Because the amount of funds issued from the Smart Contract is strictly limited and controlled, the attack rate is reduced by 51%. Even if a 51% attack occurs, the attacker wants to send money to a select third party, resulting in theft not including the amount allowed by the investor (or the developing group) at any point (TAP).

For ICO, when the development team raised tens of millions of dollars, their motivation for project erosion; or at least the activity on the project significantly reduced. The DAICO model helps motivate ideas into the real life of the group, which means that product offerings are maintained throughout the project life cycle.

In case of an abnormality of TAP, such as the amount of TAP is greater or the TAP is more frequent, the project team can lower it itself. In the opposite direction, if the project is canceled, investors receive the money, the project team can call on a new DAICO to call for funds.

6. WINBIX Marketplace — Airdrop campaign is started!

WINBIX -is a new sales channel, which allows to sell goods at the demand price at any time. The main income of the company will be a commission for providing intermediary services for the sale of products by auctions on the e-trading platform winbix.com.Further, the Company plans to monetize the Buyers’ interest in each price reduction event through advertising. An increased number of product views are expected before purchase, as compared to traditional online stores, enabling the advertisers to increase the number of contacts with a “hot” target audience.The project emits ERC-20 investment tokens called WINBIX (WBX). WBX tokens are put into circulation through the DAICO procedure (smart contract-controlled use of the project’s funds) in order to protect participants.

They are launching the Airdrop of WINBIX today!

They invite you to participate in our generous campaign. To become a participant you should register your account on the site https://winbix.io/ref/803190559920985229147251

A lot of social networks, a lot of interesting tasks, a multi-level referral campaign, a separate budget for bloggers and, of course, free WBX — this is your chance to take part in creating the ambitious marketplace WINBIX!

Airdrop is available from April 11 to June 16. Each week will begin with new active tasks, also you could get promo codes on our Telegram chat participating in exciting contests. Stay with us!

Furthermore, every day you get one additional stake for logging into your personal account. For more information, please visit https://winbix.io/en#bounty-and-airdrop .

#daico #ico #smartcontract #blockchain #airdrop #bounty #marketplace #winbix #wbx

Edited by BTTMember ( https://bitcointalk.org/index.php?action=profile;u=1190601 )

Thanks for reading!

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Airdrops BMW (Blog Media Write), airdrop hunter, bounty, and giveaways at https://medium.com/@airdropsbmw

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