If you have been watching cryptocurrency long enough you should have witnessed the days when projects initialize by sharing their vision on Bitcointalk.org. The belief is that many investors are reading through the threads. As you share the vision for your project you are getting set for loads of questions that will challenge the very foundation of your project. Sure, there will be naysayers, but your project’s success is greatly dependent on your ability to meticulously answer striking questions from top members.
Aside from this, enthusiasts and small scale investors are reading through and able to make your project known. Bitcointalk was the platform that hosted many great blockchain-based projects today. But just like that, time passed and many lost confidence in the scrutiny of the crowd. And of a truth, it can be said that many have been bought over to leave a good review. Start-ups today do not rely on Bitcointalk anymore. Most host AMA (Ask Me Anything) sessions to entertain questions. Investors seem to make decisions based on their discretion.
Decentralized Finance platforms came to the scene through projects like Bancor and Uniswap in 2018 upwards and gained even more visibility in 2020. With their adoption was the Decentralized Autonomous Organization (DAO) feature revived. A feature that became dead with the DAO attack in 2016.
DAO suggests that all decisions that will be made concerning a project should be voted in by the community according to the number of tokens held by each member. DAO became the saving grace of projects like SUSHISWAP. The community, through the leadership of Sam Bankman-Fried (SBF) of FTX, voted on how things should be run. SBF later relinquished the private keys of the project to the community-voted leaders. Through a tumultuous journey, the platform is slowly regaining its lost worth.
For Sushiswap, several discussions took place from which the proposals to be voted came.
Many huge projects today use this same method to vote proposals. Stellar recently implemented its Stellar Community Fund 2.0 which utilizes community vote to fund projects.
Moving Forward with ICO 3.0 or DAOICO 2.0?
The Blockchain ecosystem is getting more and more experienced each day. Results over the years have shown that the success rates of projects which are jointly approved, or community evaluated and approved are high. Bitcointalk in the early days gave a platform for serious reviews and questions. DAOs have been instrumental in projects’ growth in many ways.
We believe it is time for blockchain foundations e.g. Binance Smart Chain, Digibyte Foundation, Xinfin Blockchain, Stellar Foundation, etc. to reawaken Decentralized Autonomous Organization Initial Coin Offerings (DAOICO 2.0) for in-house projects and new blockchains. Members of the community who lock their coins can discuss and vote on projects they want to be funded and tokens can be distributed to the funders. Having a relatively new company to create a DAOICO may result in disaster.
This is a very great idea for exchanges like Binance who are looking to establish their presence in the Decentralized world. Create a decentralized pool for investors on BSC just like the Binance Launchpad. Stellar has started something on this via its SCF 2.0.
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