In an article published on Coindesk on October 30, 2018, the “Godfather” of Ethereum ICOs, Fabian Vogelsteller proposed a “reversible ICO,” or RICO, that would allow token investors to take back their funds at any stage in that project’s lifespan.
As Coindesk reports, the concept involves the creation of a special-purpose smart contract that allows investors to “reverse their funding commitment.”
“You are able to withdraw the funds you committed at any point of time and you do this by simply sending back your tokens,” Vogelsteller told the audience. Once Ether has been refunded, other investors can buy in, Vogelsteller continued. Because this is likely to lead to fluctuation in the value underlying a project, Vogelsteller said the startups will need some “base funding” from private investors outside of the ICO as well. According to Vogelsteller, the methods “makes scams unlikely.” Because investors can withdraw funds at any time, ICO startups are more directly incentivized to commit to their promises. Additionally, it “allows projects to fail naturally” without the risk of token investors losing funds as the project collapses, as Coindesk states.
Though the concept is sound, it comes too little too late, considering the vast amount of scams and lost funds that have already marred the beleaguered ICO and blockchain market. Such travesties and uncertainties faced by investors of the market are the main reason why W12, a blockchain based project with a secure sales model, has decided to launch its platform and provide market participants a safe haven for selecting projects without fear of losing their funds.
The W12 protocol consists of templates for smart contracts and a network of oracles, which monitor the implementation of roadmap phases of projects placed on the platform, as that is the only way the project will receive the money it manages to raise through crowdfunding. As the star-studded project team with advisors from top-end companies claims, the technology employed by W12 reduces risks, eliminates the need for intermediaries, reduces costs, protects against scams, and improves transparency on the Charity, ICO, STO, Crowdfunding and other markets. The project has already signed agreements with almost a hundred projects and is launching a special premium account sale on November 1st to November 4th with its Crowdsale ongoing until December 12, 2018.
All of the concepts that Fabian Vogelsteller proposed in the “reversible ICO” have already been implemented in the W12 model and are sure to attract heightened attention as the project’s platform is already fully operational and gaming momentum along with support from high-profile projects and industry leaders.
https://www.coindesk.com/ethereums-token-standard-creator-wants-to-make-icos-reversible/
