What is a DAICO, Explained

Contributors have much more to say and influence in the development stage of the project. If they are not happy with how the project is progressing, they can set the contract to withdraw and get a refund.

This completely mitigates the risk of scam ICOs where developers hold a token sale and then run away with the money as soon as the ICO is finished, without producing any product.

As the amount of funds that gets released from the Smart Contract is limited and strictly controlled, it will reduce the occurrence of 51% attacks. Even if a 51% attack does happen, where an attacker wants to send funds to a chosen third-party, the consequences will be contained to the amount that was authorized to be released by the contributors (or the developing team) at any one point (the tap).

With an ICO, once the team raises tens of millions of dollars, it suffers deterioration in its motivation to implement the project; or, at least, the activity decreases significantly. With DAICO model the team’s  motivation to bring the idea to life, i.e. to deliver the product, is sustained over a lifetime period.

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