A Brief Introduction
DAOs are digital organizations with by-laws set in the Blockchain Smart contracts. It is possible to manage them transparently and their finances are auditable by the public, without any downtime and corruption.
The concept of DAICO was proposed by the co-creator of Ethereum Blockchain, Vitalik Buterin, in January 2018. With the incorporation of certain aspects of DAO (Decentralized Autonomous Organizations), it serves an enhanced fundraising ICO Model.
Why was it Created?
As we know that ICO is a method used by organizations, generally startups, to raise funding for product development or for the completion of a project. However, there are numerous challenges associated with these ICOs. They are becoming quite riskier & complicated due to the lack of transparency in the use of funds and scams. Hence, a solution was needed to overcome these issues, associated with crowdfunding market. The introduction of DAICO is one of the major steps towards this, as it aims at making ICOs safer by involving contributors in the early project development phase.
Its Benefits
In contrast to traditional ICOs, DAICO has multiple benefits, including:
- Better control of the contributors on their funds.
- Greater role of investors in initial development phase of projects, with assurance of fund reversal on dissatisfaction.
- Lesser chances of scam and abandonment of projects on the completion of their ICO.
- Strict control over the release of funds as per the defined roadmap mentioned in the project’s Smart Contract.
WeiCrowd: A Platform Based on DAICO Model
WeiCrowd, the go-to platform for ICO standardization and end-to-end ICO lifecycle management, has been developed with the motive to give all the contributors and Blockchain startups a secure crowdfunding platform. This platform is based on DAICO and hence, has the capability to minimize the complexity and risks associated with the Token economy. WeiScrow, one of the modules of WeiCrowd, simply reflects how the platform is DAICO based.
WeiScrow is a decentralized roadmap escrow fund designed for the funding raised via WeiLauncher, another module of WeiCrowd. These funds are stored in cold wallets in a secure manner and the project roadmap is programmed into Smart Contract, making it possible to release the funds for each milestone. The release of funds is based on community consensus, along with the expert report.
If the project fails, the funds are released back to the contributors or re-purposed for the new tokens. WeiCrowd will collect, assess, as well as publish each milestone failed or achieved, helping the community to form a dispute-free consensus. WeiScrow supports in controlling Token scams and protecting contributors from suffering total loss, if the projects fail.
Conclusion
The platform WeiCrowd has been structured in a way that it reflects the usefulness of DAICO. With the help of Smart Contracts and its seven modules, specifically WeiScrow, WeiCrowd provides contributors control over their funds, eliminating several problems such as fraudulent activities and roadmap failures in the existing ICOs.
Read WeiCrowd Whitepaper- https://www.weicrowd.com/white-paper
Join WeiCrowd Whitelisting- https://weicrowd.com/whitelist
Join WeiCrowd at Telegram- https://t.me/WeiCrowd
