ufoodo DAICO — Token Sale and DAICO specifications
As mentioned in our blog post before we will restructure our Token Sale to be one of the first DAICOs.
Vitalik Buterin recently introduced the idea of DAICO. This new approach combines the old ICO concept with the benefits of a hardcoded ruled DAO. Token holders gain the possibility to vote for setting the monthly project budget from the raised funds and even to cancel the DAICO and get the remained funds back. The result is a more secure version of an ICO. Where Token holders have control over the project funds and the risk of a total loss in case of a SCAM-ICO is minimized. The DAICO model perfectly matches to our vision of a decentralized food delivery service — ufoodo. Since we anyway want to process aligned our communities’ expectations this model ensures it with code instead of trust.
1. Contribution stage:
Our Pre-Sale still will start on April 1, 2018 at 14:00 UTC. The Pre-Sale is capped at 5,000 ETH and will end, if the cap is reached or on April 30, at 14:00 UTC. To participate in the Pre-Sale you have to be whitelisted.
(Therefore, fill out the form, which will be accessible one week before the Pre-Sale starts or contact us before with your name, date of birth, Ethereum sending-adress/receiving-address, if deviating and the amount you are going to contribute; via contact@ufoodo.com)
To increase DAICO marketing activities we will initially take out 1,000 ETH, when our soft cap of 3,000 ETH is reached.
On May 01, 2018 at 14:00 UTC our Token Sale will start. For contribution of more than 10 ETH (underlying a price 1000 €/ETH) you will be contacted to complete a more detailed KYC-process otherwise your contributed funds will be resent to you. The Token Sale ends, if the hard cap of 40,000 ETH is reached or on May 30, 2018 at 14:00 UTC
2. Realization stage
Once the contribution period ends, the ability to contribute further ETH stops, and the initial token balances will be set. Now the token becomes tradeable and the project realization starts.
The major variable in the DAICO contract is the “tap” ( = wei / sec). The tap determines the amount per second we can take out of the contract. We will transfer the cumulated amount on a monthly base. The ufoodo Team defines the initial tap based on our predicted costs, which we will publish to guarantee transparency.
A. The tap increasing poll
If we need to increase the tap (e.g. when we hire new team members or when we need to expand our working space), our team can initiate a poll. The poll system will be defined by the following specifications:
· min. poll frequency: 14 days
· max. % for tap increase per poll: 25%
· Quorum — min. votes for poll fulfillment: 15%
· max. stake per vote: 0.2%
· poll duration: 2–5 days
Each contributor can vote for or against increasing the tap as long as he or she holds UFT on his Ethereum wallet. Each vote is weighted according to their stake (owned amount of UFTs). To ensure a fair poll the maximal stake per vote is limited to 0,2% of the total Token Supply. Ufoodo’s reserved funds are excluded from participating the poll. So, bigger contributors and our team can’t affect the poll with a bigger stake.
The poll is realized, if more than 15% of possible voters participate within the duration of the poll.
Each poll will be duly announced and opened for votes for at least 2 days. Increasing the tap will be limited to 25% and can only be initiated every 14 days. Only the ufoodo Team can initiate a poll.
Withdrawal mode — project shutdown
If we fail to implement our planned ecosystem or if we mismanage the received money, the token holding community has the option to shut the project down. Therefore, we follow the example of The Abyss Team, by defining a group of professionals with established reputations. They will get the exclusive right to initiate a poll for the project’s shut down, which leads to returning the remaining funds to all contributors. Because of the huge impact of a shutdown, the corresponding poll has to be announced at least 14 days before the vote starts and will last for 10 days. At the moment the community decides to shut the project down the tap will be set to zero, so the remaining funds won’t decrease any more. Ufoodo’s reserved UFTs as well as the UFTs bound in a vesting contract for the team and will be burned. The remaining ETH will be proportionately withdrawn by the UFT holders.
To prevent problems with exchanges, the refund process starts 7 days after the poll ended. Every contributor has time to transfer their UFTs to a separate wallet.
Risks — How to prevent attacks
With our defined specifications we attend to minimize risks for our contributors. To prevent manipulation from a 51% attack, the tap increasing limit of 25% and the poll frequency of 14 days ensures that the tap won’t be increased extraordinary against the will of our contributors. Moreover, we will guarantee to not making use of funds from an unintended increased tap. Should our team do it anyway, a project shutdown can be initiated.
The group of shutdown oracles minimizes the risk of unwanted project shutdowns. If an unintended project shutdown is even though fulfilled due to an attack, we can create a new Token which will be sold accordingly to Token Rate at which withdrawal was proceeded. That means, if you contribute the same amount of ETH you get the same amount of the new ufoodo Token you are holding. In this case the old Token will not be implemented in our ecosystem, so it will not have any useful function despite of trading.
If you have any questions or suggestions, regarding the DAICO, feel free to contact us via contact@ufoodo.com or comment in Bitcointalk:
We will publish our DAICO Smart Contract timely before Pre-Sale starts.
Stay tuned to our updates and we are really honored and thankful for your continued support!
Best regards,
The ufoodo Team
