ICO or Initial Coin Offering have revolutionized the definition of startup funding by allowing people with an idea to raise the needed capital through the digital token sale. The existing method has paved the way for scams to take over the startup funding space and less credibility of the startups. To improve the current state of ICO market, DAICO has emerged and is dubbed to be the new and improved version of ICOs.
What is DAICO?
DAICO stands for Decentralized Autonomous Initial Coin Offering. It is a new fundraising concept that has coalesced the benefits of DAO (Decentralized Autonomous Organization, a digital organization that initiated the investor-directed venture capital fund) and ICO (Initial Coin Offering) to improve the state of digital token sales. This DIACO proposal was put forward by Vitalik Buterin, Founder of Ethereum, as he explained the usage of DIACO to the investors who contribute funds to a project.
The investors can contribute funds to any blockchain project during a specific time period called “Contribution period.” Once the contribution period is over, investors can regain control of the funds they have voted upon, and the concerned developers can receive the said amount in the following months to come. Read further to know more - https://www.blockchainappfactory.com/blog/entry-of-daico-and-its-effects-on-crowdfunding-market/