ADN Ecosystem: Implementing the First-Ever ICO Wallet
ADN Coin is all into ICO security and stability. That is why we are creating the ICO Wallet as part of our ecosystem to secure your ICO investments.
As we see blockchain technology with fresher eyes, we notice that it is beginning to establish its own ecosystem that far extends beyond the digital realm. Despite the presence of detractors expressing their perpetual misgivings on cryptocurrency, we see more individuals and companies adopting blockchain technology.
Sending huge amounts of assets can be accomplished within minutes, and transactors need not worry about the fees. Data needed across different industries can be safely secured on the blockchain without any fear for malicious alteration and tampering. As in the case of ADN, blockchain technology is becoming a new pillar of trust and security which can help re-instill investor confidence and support to promising blockchain-based projects.
There are many elements in a blockchain ecosystem that every crypto enthusiast needs to have sufficient knowledge with. One such example is the ICO Wallet, which is one of ADN’s best technologies. Others are the mainnet, consensus protocol, and token swap, to name a few.
We will be discussing ICO Wallet in this first blog of our ADN Ecosystem series.
The ICO Wallet: ADN’s Investor Protection Feature
Every blockchain has had a fair share of good and bad initial coin offering (ICO) experience — while many successful projects had ICO to thank, researches have revealed that many ICOs have been used in the past by organizations to scam people. Given the decentralized and often unregulated nature of ICOs, this platform has helped scammers get away with the investors’ hard-earned money.
ADN, as a blockchain, aims to protect investors from being victims of ICO scams through its investor-protection mechanism. This is the ICO Wallet, which intends to safeguard all investments of ICO participants and will only grant the ICO companies access to a specific amount of investment as allocated in each stage. All of the funds stored for other stages will remain inaccessible until the majority of investors have approved for the project to continue.
Let’s delve further into this one-of-a-kind feature.
The Stages
Funds which will be raised during the ICO will be properly appropriated according to the number of stages set by the ICO company. The number of stages may vary, even though funds allocated for each stage will be divided equally. This will be reviewed by the ADN team.
ADN will require a pre-preparation stage during which the ICO company will convince the investors that it is fit and ready to commence with the project. It is also during this time when the funds for the entire ICO will be equally allocated to each stage.
Funds allocated for each stage will be equal, and in the event that the ICO is shut down, only the remaining funds locked in the other stages will be returned to the investors. The amount that each investor will receive will depend on the cumulative price of the tokens he or she has purchased divided by the total ICO hard capitalization.
Computation is shown below:
ICO Refund= Worth of tokens purchased x (Total ICO Hard Cap — Amount Consumed in ICO)
Total ICO Hard Cap
Voting Process
The voting process is implemented to have a consensus mechanism that will regulate the conditions that will fulfill the success of the ICO company’s project. Each investor will be assigned a certain amount of voting power to be able to participate in the voting process. This will specifically depend upon how much amount of token the investor has purchased in divided by the total ICO hard capitalization.
Computation is shown below:
Voting Power (VP) = Total Investment
Total ICO Hard Cap
The voting process will occur for 2 days. Votes of investors who failed to vote during the allotted time will be considered by ADN as upvotes. Once the votes reach at least 50 percent of the total investors’ voting power, the next ICO stage will be unlocked, along with the funds allotted for it. The ICO company is allowed for up to a maximum of three failures, after which the entire project will be shut down. Failure to reach the required percentage of votes will result in the following consequences:
Fail 1: 5 days extra allowance to accomplish goals as set in the stage
Fail 2: 3 days extra allowance to accomplish goals as set in the stage
Fail 3: ICO shutdown
For the first two failures, the ADN ecosystem will allocate an extra amount of time, as specified above, to give the ICO company grace period to accomplish the goals they have initially set for the said stage. The investors will vote on each attempt whether the ICO company will receive a passing mark or a failing one. Failure to comply after three failures will result in the ICO shutdown and refund of total investment allocated for the remaining ICO stages.
ADN is developing the ICO Wallet together with the mainnet, wherein the former will be launched shortly after the latter. This is being developed by the ADN team in collaboration with DeepDive Technologies.
We advise every member of the ADN ecosystem to standby for further updates regarding the ADN mainnet and the ICO Wallet. You may also follow our social media channels to be aware of our most recent achievements.
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See you next week for the continuation of our ADN Ecosystem blog series!
