The developer, which formalized the code, which lies at the heart of most primary offerings of coins based on the standard token-ERC20, proposed a new approach. It’s intended to make the financing scheme ICO safe for investors.
On 30 October in Prague at the annual conference of developers of Ethereum Devcon4, Fabian, Thelistener suggested “a reversible (reversible) ICO,” or RICO, which would allow the buyers of tokens to return their funds at any stage of the project. In particular, the concept involves the creation of a special smart contract, which will give investors the opportunity to “cancel funding commitments”.
The speaker told the audience:
You will be able to withdraw the funds that have made at any time, and this can be done simply by sending the tokens back.
After that tokens will be able to buy other investors, says Vogelstein. However, this can lead to fluctuations in the value of the project in connection with which the developer proposes to provide some basic funding from private investors outside the ICO.
According to Thelistener, this method will make fraud unlikely. The prospect of a return of funds will increase the ICO’s commitment to start-up their own promises. In addition, it will allow projects to “fail in a natural way” and prevent the risk of losses for investors in the event of a crash.
The developer noted that many companies offering tokens that deviate from the important ideas of decentralization Ethereum. According to him, having received large funds in the early stage of the project, the company is “beginning to get involved in buying expensive cars instead of doing something useful.”
Given its role in creating the ICO and standard tokens ERC20, the developer believes “is bound to come up with something better.”
His idea echoes with the idea Vitalik Buterin on “a more secure scheme ICO”, and the first step for RICO will be the real test code. Thelistener intends to spend it within their own blockchain startup Lukso.
The specialist also said that his approach would provide “an important balance between users and projects.”
According to CoinDesk ICO Tracker, over the past two years the ICO has attracted more than $20 billion.