Top 4 rated ICO’s

Stunning approach to stabilizing the cryptocurrency price
4 /5
  • Start date: 04-01-2018
  • End date: 14-03-2018
  • Accepted:
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Empowering the games community
4 /5
  • Start date: 20-03-2018
  • End date: 10-04-2018
  • Accepted:
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Decentralized platform for spare GPU owners
3.5 /5
  • Start date: 18-02-2018
  • End date: 28-04-2018
  • Accepted:
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Disrupting the electricity market
4.5 /5
  • Start date: 20-02-2018
  • End date: 30-04-2018
  • Accepted:
Read more

RocketICO adopts Vitalik Buterin’s new DAICO concept

Posted Feb 19, 2018

As much as 10 percent of funds raised in ICOs were lost to scams. A situation that has got many in the crypto community worried. Yet, the incidence of scams is hardly the only problem facing the Initial Coin Offering space. There have been many companies that have had successful crowdsale yet have not been able to develop even an alpha model of the project many months after.

These are some of the challenges bedeviling the ICO space and why many have proposed solutions to it. One of such proffered solution was made by Vitalik Buterin, the Ethereum co-founder who proposed a DAICO or a Decentralized Autonomous Initial Coin Offering.

DAICO is a hybrid of DAO, Decentralized Autonomous Organization and ICO taking the cue from some features of the stateless DAO to add a self-regulating feature that ensures that investors are protected, and have a say on how funds are disbursed.

RocketICO has adopted the DAICO concept of Buterin for a system hoped to reduce the impact of having ICOs that have no real value offering. The DAICO concept creates a decentralized autonomous method for the project that is distinct from ICO in that it doesn’t centralize authority with the team behind the project.

Rather, every phase of project development is approved by the investors through a vote to ensure that the situation doesn’t arise in which a team would raise money from an ICO and casually go away with the funds with no form of accountability to the investors.

This creates a form of check against scams and phantom projects. For instance, if a company wants to raise funds to build an app, after the ICO, they won’t be able to have access to the funds until the investors vote that a certain predetermined amount be released to the team for a specified phase of the project.

As the team accomplishes the result expected or reaches a milestone, they can apply for more funds to be released which would be done consequent on the approval by the investors through the vote.

RocketICO introduced what they called the round model in a bid to help genuine companies with realistic projects to raise funds through ICOs to finance their startups, bearing in mind that the proliferation of low-quality startups has made it difficult for genuine crowdsales to get noticed by investors.

Consequently, worthy ICOs would need to spend more marketing fund to create enough outreach that makes the impact. The Rocket startup eliminates that challenge essentially by creating the platform that brings groups into mutually beneficial partnership.

The system was developed to enable viable concepts to gain an edge over the many ICOs that have not been proven through the creation of a channel of interaction between the startup and potential contributors. With this system, a startup goes through five stages in the process of converting the idea to an enterprise through the programmed utilization of Initial Coin Offering funds.

A noteworthy fact about the DAICO is that crowdsale can commence at any stage immediately the company’s whitepaper has been made public, at Round One. This first phase enables submission of the concept, as well as input and feedback from investors and experts, which enables that team to make reevaluations and adjustments based on received feedback.

The Second Round is the Pre-Seed in which the team will have access to 10 percent of the funds realized from the ICO to start development of the product prototype. This is an amount not exceeding $150,000. The successful prototype development is the incentive needed to have access to more funds.

The Third Round is the Seed stage which can be initiated after the team has successfully developed a template for the project. This stage of the ICO enables that team to raise up to $500,000 from investors, through the sale of more tokens. Funds which would be used to develop the alpha version of the product.

The Fourth Round in which the company can raise up to $3 million is meant to develop a fully operational version of the product as well as have access to the market. This is the stage in which they can connect with their clients and customers by commercializing the product.

The Fifth Stage is meant for products that all already in the market as the need for further research and development arises. To fine tune and for scalability for instance. At this round, the company can raise up to $5 million through this crowdsale stage.

Benefits of the new system are that comprehensive audits are carried out by experts on each project to ascertain practicality and utility. This helps eliminate unrealistic projects. Investors get notified at each stage of the projects they are involved with while the companies behind a project have access to all the tools they need to have a successful project development.