Introducing the Coin Governance System
Initial Coin Offerings (ICOs) have made it possible for anyone to participate in the success of groundbreaking companies. Next to that, they have also proven their potential as a powerful fundraising mechanism: last year they raised over $5.6 billion!
Nevertheless, the ICO market has an increasing need for (auto)regulation and governance to protect investors from scams, bad practices and teams not capable of managing well the raised funds.
To solve this, we have created the “Coin Governance System” (CGS), which consists in an on-chain governance mechanism that decentralizes the most conflictive point of an ICO: the management of the raised funds.
The Coin Governance System (CGS)
If an project implements the CGS, the funds raised by during the ICO will be held the in the CGS escrow smart contract and will be released to the ICO launcher gradually over a period of time. However, if at a certain point investors of the ICO aren’t happy by how funds are being managed, they can submit a claim to the CGS.
If the claim receives enough support, it will be opened and handled by a decentralized judge: the community of CGS Arbiters (CGS token holders). They will be asked to vote on the claim by responding “yes” or “no” to the question if the ICO is doing a proper use of the funds.
If the community of CGS arbiters believe the claim is grounded, the CGS will go into a withdraw mode and any ICO Token holder can redeem the proportional remaining Ether in the CGS escrow by sending back their ICO Tokens.
If the CGS Arbiters believe the ICO launcher is doing a good job, everything goes back to normal as before the claim.
CGS Arbiters are incentivized to vote correctly, because they can gain or lose CGS Tokens depending on the outcome.
For more information about the CGS, take a look at the light paper or visit https://cgs.vote/.
Towards safer and more attractive ICOs
With the Coin Governance System we aim to prevent scams and bad practices, align the interests of ICO launchers and ICO investors and last but not least, make ICOs an even more attractive way of raising funds and participating in the success of innovative companies.
“Initial Coin Offering have demonstrated how the access to startups could be completely disrupted. But this methodology is at its earliest stage, and need to be improved not only with regulation, but also with self regulation, where smart contracts play a key role. This thought led us to start building a Coin Governance System, a simple but strong machine to align the interests of all the players in an ICO” explains Alejandro Gómez de la Cruz, CEO & cofounder of the Coin Governance System.
The Coin Governance System is fully operational in Kovan Testnet (Ethereum): https://testnet.cgs.vote/, we would love to invite you to try it! You can read the instructions on how to use the testnet here. Let us know on Telegram if you have any questions or feedback.
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Official CGS channels:
Telegram: https://t.me/coingovernancesystem
Website: https://cgs.vote/
Whitelist: https://goo.gl/CTuafC
White paper: https://goo.gl/y9gQ2W
Light paper: https://goo.gl/Ex8me6
Twitter: https://twitter.com/CGS_vote
LinkedIn: https://www.linkedin.com/company/coin-governance-system/
Medium: https://medium.com/coin-governance-system
Facebook: https://www.facebook.com/Coin-Governance-System-146771572657311/
Instagram: https://www.instagram.com/coingovernancesystem/
Newsletter: http://eepurl.com/dmtBwD
