Vitalik Buterin, the creator of the Ethereum Network, recently proposed a new method for decentralized fundraising called the “DAICO”. Incorporating elements of Decentralized Autonomous Organizations, or DAOs, the new model is designed to minimize the complexity and risk associated with ICOs.
Buterin outlined the new model in a post on the Ethereum Research Forum entitled “Explanation of DAICOs”. In the exposition, the Russian-Canadian programmer outlines a new model that integrates characteristics of DAOs into ICOs to create a new model he refers to as the “DAICO”.
The post includes a diagram that breaks down the benefits of bringing DAO elements into an ICO, including the ability to leverage crowd wisdom, the distrust of centralized teams, and the ability to spread funding over time. The DAICO model also incorporates the single-project approach of the ICO model along with a lack of a 51% attack risk.