Why does WINBIX use smart contracts?
“I am a lead developer and a technical specialist of the project. I supervise the technologies which are used. Also, I make clarifications on technical issues for the team of developers”. Stanislav Vinogradov
“I’m a fullstack web developer and a smart contract developer. I take care of the technical side of the project and keep it working for users”. Mikhail Dezhurko
Here is another article from the series which is devoted to WINBIX, the ideas which form its basis and the specifics of the implementation of the project.
In this article, we will briefly explain why does WINBIX use smart contracts. Let us kindly remind you that you can get more detailed information on https://winbix.io and in the Whitepaper, which can also be found on the site.
The question of financing is one of the main issues that a growing enterprise needs to solve. There are many mechanisms for attracting funds but through the efforts of crypto-enthusiasts, DAICO is created to be the most democratic and fair infrastructure for fundraising. What is DAICO, what is the advantage of DAICO over ICO, and what is the reason for creating the smart contracts?
ICO (Initial Coin Offering) became an analog of IPO (Initial Public Offering) in the world of cryptocurrencies. But the distinctive feature is that the investor does not need intermediaries like exchanges and brokers to take part in a promising enterprise and receive a share of its profit. Now everyone can independently contribute his funds and receive the tokens of the company to participate in its future success.
Another advantage of ICO over traditional IPO is the use of a distributed blockchain infrastructure (as for WINBIX, it is Ethereum) for open, transparent and secure storage of data on ownership of tokens. No one (neither the WINBIX team, nor the state, nor banks or exchanges) can somehow take away the tokens from the owner, destroy it or transfer it somehow. All the transactions for the sale of tokens, its transfer, return, and buyback are made by the smart contracts within the Ethereum blockchain automatically and without the possibility to maliciously affect on it from the outside.
So far we have been talking about ICO and its merits. However, WINBIX uses a more rare fundraising model — DAICO. What is the difference between DAICO and ICO, and why did WINBIX decide on an option, which is more “exotic” and difficult to implement?
The main reason is our concern about the interests of investors. In a traditional ICO, the project team gains access to the funds raised at the end of the ICO or sometimes during the crowdsale. As opposed to the traditional ICO, DAICO (Decentralized Autonomous Initial Coin Offering) provides investors with greater security. DAICO is always based on a smart contract. Its function is not only to sell tokens and accumulate the collected funds, but also to ensure its safety. The project team will not be able to access the funds in a different way than it was described in the Whitepaper. As for WINBIX, it means that the team can use the collected funds for the development purposes of the project in the amount which is not larger than it was described in the Whitepaper. For the first month, this amount is equal to 2% of the funds raised, for the second — 2%, for the third — 3%, and so on. The smart contract will not allow withdrawing the funds in a larger volume. At the same time, investors retain the option to return their tokens into a smart contract to withdraw their investments. Also, the smart contract provides a refund to investors in the case of non-collection of the soft cap. So all the features above ensure the protection of the investors from unfair actions of the team, what is unattainable for an ordinary ICO.
The DAICO of WINBIX is divided into two phases: PreDAICO and DAICO. At the first stage, which has already begun and will last until June 22, 2019, 27,500,000 WBX tokens were emitted. The minimal sale price is 0.00055 ETH per 1 WBX. The price will increase with every 5,000,000 WBX sold, the minimal transaction volume is 0.1 ETH. Investors who take part in fundraising at this stage will be in the most favorable conditions and will be able to get the maximum profit for each invested ETH.
The second stage of DAICO will begin in one year after the end of PreDAICO, and the minimum selling price at this stage will be 0.0013 ETH for 1 WBX.
And now you can take part in financing (and getting profits) of WINBIX by simply transferring ETH to the PreDAICO WINBIX smart contract.
More information, including the full text of Whitepaper, can be obtained on the project website https://winbix.io
The code of our smart contracts is open, it can be found on GitHub via the link https://github.com/winbix/smartcontracts, and on https://etherscan.io at the addresses of smart contracts. All our smart contracts are verified, the code is available for viewing directly on https://etherscan.io.
We will be glad to see you among the investors of WINBIX!