A Blockchain Project May Have Found a Solution of the Broken-ICO Problem

A Blockchain Project May Have Found a Solution To the Broken-ICO Problem

 

In January 2018, the co-founder of Ethereum project Vitalik Buterin proposed a concept of DAICO, which has later become a universal standard of all Initial Coin Offerings (ICO). This concept assumes that an investor transfers a certain amount of money to a project’s team through an automated smart-contract. Still, a few years later the crypto market appeared to be overfilled with fraudulent projects that vanished after the end of ICO. The concept of automated contracts between an investor and a blockchain project lacked something meaningful. The W12 project is aiming to fill this gap. The startup is developing an open protocol for creating and executing smart-contracts.

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The solution reportedly reduces the risk of loss of the funds in ICOs by up to 95 percent, while increasing the total return on investment by more than 10 times. Its main difference with the DAICO idea is that the certain amount of investors’ funds is unlocked only after the fulfillment of each roadmap stage. As the team notes, such a scheme is basically not beneficial for scam projects as it doesn’t allow to take all the investment at once.

“According to this new model, teams will be focused on execution and developing technologies that will create the basis of a new economic era,” believes the W12 founder Oleg Sharpaty.

The protocol includes templates for the smart-contracts, DAO management and a network of oracles that track a project’s progress. The technology is available for any project on the W12 crowdfunding platform, a second pillar of the company’s ecosystem.

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This is a marketplace of projects with an investing option. Dozens of projects are already offering users to participate in the fundraising. It is important that any startup can conduct an ICO using the W12 protocol and platform. For instance, it may be a project of writing a book or shooting a movie. It is investor’s money that are secured with the W12 solution.