The DAICO: ICO Savior Or Wolf In Sheep’s Clothing?

Last week, a gaming platform called The Abyss closed its sale and launched one of the first decentralized autonomous initial coin offerings (DAICO). Originally proposed by Vitalik Buterin, the DAICO aims to empower investors and provide more accountability to a rattled ICO market. In a traditional ICO, a development team receives the entire amount raised in one lump sum at the beginning of the project. A DAICO, on the other hand, lets token holders stagger the funding over time. At first glance a DAICO seems reasonable. Making funding contingent on real-world results helps keep developers honest. It also keeps a team motivated and hungry. But at the heart of the DAICO are two of the perennial questions facing the industry: (1) is crowdsourced decision making still inherently valuable even though it is often mistaken and easily manipulated and (2) how do open-source projects protect their brand when developers can copy code and quickly leap-frog into new opportunities?

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