Why Followine uses a DAICO?

Why Followine uses a DAICO?

What is a DAICO?

Vitalik Buterin, the man who created Ethereum, in 2018 talked about a new method for the decentralized collection of funds, called "DAICO". This involves the merging of the elements of decentralized autonomous organizations (DAO) and the so-called ICOs, in order to minimize the complexity and risks associated with the second one. As a matter of fact, within the smart contract it is entered the function tap (unit: wei / sec), which determines the amount of funds per second that the development team can request from the contract.

A DAICO contract is published by the development team that wants to raise funds for a project. The DAICO contract begins in "contributory mode", specifying a mechanism by which anyone can contribute. Once the fundraising has been completed, the possibility of contributing to the ETHs is lost and the initial balance of the token is placed; from that moment on, the token can be exchanged.

Why we use a DAICO?

For the safety of investors and for assuring transparency, which can not be missing in a project like Followine; moreover, for the desire to stay on top of what is current, which represents the guideline of those who want to work in the world of innovative startups.

A DAICO was created to protect investors and, in addition, to create an ICO truly transparent and self-managed by smart contracts, allowing to improve the feasibility and development of the project. It is in the interests of everyone, both of the team and the investors, to keep the price of the token high and avoid the collapse on the exchanges (dump), especially for a long-term project such as Followine.

For this reason we have included within the smart contract not only the rules for the protection of short-term investments, but also those ones for the protection of long-term investments and the entire project. Obviously, all the rules can be verified on our public smart contract, in full compliance with transparency, and can be discussed in a special section of Bitcointalk.

All the rules included are used to avoid the collapse of the token once listed (unfortunately, something that often happens, due to lack of specific skills or, alternatively, of the good faith within the team). It is pretty clear that Followine is not a project for everyone: the team invites you to invest only if you really want to support the project in the following months. We said all that without forgetting that, after all, we are talking about business and what matters is to get a profit: what better profit than that resulting from having participated in the creation of a healthy company, which will continue to grow over time and will be able to guarantee, as a natural consequence, an increase of the value of your token?

Learn more about Followine in our whitepaper.

Fabio Guida

CEO di Followine, quando ha un po' di tempo scrive quattro righe.

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