With the unprecedented increase of ICOs on the Ethereum blockchain, traders and Ethereum fans have had very polarizing opinion about crowdfunding’s impact on the cryptocurrency market. Many have voiced dissenting opinions of crowdfunding in general, and have ICOs unilaterally for the recent ETH slump. When Ethereum’s price rocketed to above $400 earlier last month, people pointed towards successful ICO’s as the reason. However, now that Ethereum’s price threatens to hit $200, Ethereum fans have once again turned to ICOs, blaming poor management and practices as the cause of the drop in price. There can be no argument, poorly managed ICOs have caused major issues to the Ethereum blockchain. However, the increasing number of ICOs proves they’re here to stay. So what can ICOs do better? Autoria’s unique supply-curve modeled Proof of Stake distribution may be part of the solution.
Here’s what Autoria is doing (that other ICOs should follow) in order to help solve the ICO dump crisis.
1. Be transparent. Autoria is actively engaged with our community, through discord, twitter and countless other mediums. Too many ICO’s have been treating participants as if they were expendable, Autoria recognizes the important role participants play in crowdfunding.
2. Have a goal. Communicate what you want to accomplish. Autoria has outlined a roadmap for sucess. These measurable goals help drive participation and rally community support.
3. Use a supply-curve modeled distribution. Autoria is the first token to use Automatic Mining and a growth model algorithm to distribute tokens. This unique Proof of Stake mining model ensures fair and predictable distributions. It also prevents ICO token dumps, as seen by many of the recent high profile ICOs.
4. Put a cap on individual contributions. Autoria caps individual participation at 100 ETH. Recent ICOs have been overshadowed by large buyers who end up purchasing nearly all of the available tokens, leaving everyone else in the dust. While it may mean leaving some money on the table, capping individual participation is the best way to help solve the ICO dump crisis.
As long as ICOs heed Autoria’s example, turning their backs on greed and focusing on their participants, Ethereum is here to stay. It’s a trying time in the crypto market, but part of the beauty of cryptocurrency is that the community can develop new innovations to solve the growing pains we are experiencing. A decentralized community of developers can achieve more than the traditional centralist approach that is the current status quo.
Autoria’s unique crowdsale runs from Friday, July 14th until Friday August 4th, and will occur on http://autoria.io