Scrum-style investing — implementation of DAICO or how crowd investors can participate in the life of startups (or how to live after the bubble)

Traded — fun had, counted — tears shed (russian people’s wisdom)

But as usual, after idealists — explorers, guys in black hats come firsts and soon. They establish “Wild West rules” and don’t respect interests of partners. Now we can see this scenario in the crypto world.

The DAICO: A new hope

Vitalik Buterin brings again new great idea — DAICO. Right after New Year holidays (anybody knows, can he rest ?!:) ), Vitalik outlined the new model in a post on the Ethereum Research Forum entitled “Explanation of DAICOs”. Buterin 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.

“Anti-venture” or “Post-investing”

We carefully thought Vitalik’s idea and expanded it up to the new-way investing schema, and call it ‘Anti-venture’ or ‘post-investing’.

“Scrum” investing

We continued working on the environment for safe investment. How can we give investors more control over projects? How can we involve them in development, to they didn’t only speculate with tokens and enjoin XXes? Maybe this guys have good ideas for the product, that can add value and extend the market? This approach provides investor not only with a safe way of investing but direct influence to the ICO-projects development and growth.

  1. The ICO team has issued tokens and started work on the project.
  2. Investor writes his own ideas, wishes or offer with desired business-functions in format of user story. Why “scrum?” ( If you don’t know, what mean “scrum” here, you can see in Wiki: Scrum). The main idea of “scrum” methodology is to deliver working product every “sprint” — 1–4 week work iteration. So investors can see new valuable result every month and team get investments every month to!
  3. Investor remits the sum in system’s tokens to the escrow smart-contract. System commits the money, but investor does not get the project’s tokens for a while.
  4. Other investors can see the offer, accept it and also join to the story.
  5. The project team starts to negotiate the investors offers and assign the story terms and conditions — the job objective, scope and criteria of acceptance. The progress of negotiations is fixed in the trusted distributed storage system DARFChain.
  6. In the case of team reject the user story or doesn’t accept or consider it during the time limit, investors get their money back.
  7. If investor and team have got a deal and team has accepted user story, then money can not back to the investor but the team will not get them, until job is accepted by investor’s side.
  8. If team count that the job has been fulfilled, they request the smart-contract close, and investors can get this message at their wallets.
  9. If a majority of investors (according to the sum) is agree that work is done, then smart-contract remit sum to the team and tokens — to investors. Then the team can exchange DARFs to Ether via smart-contract with a fixed price.
  10. If the story is not accepted by investors within 3 months after the end of the period indicated by the team (“estimated implementation period”), investors return their money.

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