ICO (Initial Coin Offer) has become the most convenient way of investing and raising funds nowadays. In 2017, more than $6 billion were raised through this innovative fundraising approach, which was 20 times higher than figures for the year 2016.However, its current implementation (as a crowdfunding or in other forms) has a number of challenges, such as: high investment risks, complexity of technology, expensive legal support, inefficient marketing, lack of transparency,fraudulent activity, low success ratio, volatility of cryptocurrencies, unpopularity, and scams.
Daox is an investment ecosystem and a blockchain-based fundraising platform that provides a complete solution for ICOs, crowdfunding, and crowdinvesting using cryptocurrencies and with the application of the concept of a decentralized autonomous organization.Daox makes use of the concept of Decentralized Autonomous Organization
(DAO) as a tool for interaction between a startup and its investors. The main distinctive feature of Daox ecosystem is that each startup and its investors interact via a separately created Decentralized Autonomous Organization(DAO) on the Ethereum blockchain.#daox, #dxc, #dao, #cryptocurrencies #ico
WHY DAO (Decentralized Autonomous Organization)
The DAO concept serves as an absolute and unbiased guarantee, ensuring that the interests of both parties will be respected, as well as serving as the intermediary. The interests of both parties are taken into account in equal measure, investors and project authors alike. Some of the main positive aspects of applying this approach are given below.
ADVANTAGES FOR INVESTORS
a) Safety: All the proceeds raised and stored following the principles of Daox are protected from misuse and unauthorized withdrawal .The finances are securely stored in Ethereum smart contracts and could only be used on project development. Therefore, scams and any other fraudulent activity are almost completely eliminated.
(b) Value of Tokens: The funds raised via Daox principles are kept at investors' disposition, the way they are managed further on isdetermined by voting. Therefore, even upon transferring funds to the project, the investor owns an asset as the digital share of a DAO (a token).
(c) Project team is motivated: When the startup team does not receive all the funds at once, but rather gets tranches as work proceeds, the level of motivation rises significantly. This in turn increases the chances of success of the startup
(d) Transparency: Project initiators get funds gradually by publishing proposals, whereby this procedure can only take place when approved by the majority of investors.
(e) Lowering the risks: According to Daox principles, each Daox-based organization has a functionality to return investments, if the investors decide that the founding members fail to achieve the assigned goals.
ADVANTAGES FOR STARTUPS
(a) Ready-made solution: By using a simple step-by-step interface a startup is able to launch its crowdfunding campaign and tokens. No programming or other skills are required.
(b) Investors' heightened interest: Attracting funds according to Daox principles confirms the team's intentions to achieve success rather than collect funds. This has a positive impact on fundraising process, since the team gets more credibility.
(c) Engagement in the daox.org community: Investors follow updates on new projects, which appear on the daox.org platform.
(d) Independence: Each project can use Daox smart contracts regardless of daox.org platform or any other service,and it is possible to attract funds through any source.
(e) Safety: All the funds are securely stored in an independent organization on the Ethereum blockchain. That is why it is impossible to steal them or get them in any other illegal way.
(f) Transparency for team members: The DAO concept solves the problem of trust among the team members.
DAOX ECOSYSTEM
The purpose of the establishment of the Daox ecosystem is to provide the most efficient way of investing and attracting funds for startups.The ecosystem consists of the elements that could be grouped into the following 4 categories:
- Users (Projects,Investors,Other users)
- Interfaces (Wallet app, daox.org, other interfaces)
- DAO's
- Third-party tools and
services ( Know Your Client, Integrated Affiliate Network, Automated Legal Service, curator)
Thus, the Daox ecosystem has interfaces that allow for the interaction between users and DAOs; on the other hand, there are service providers and developers who offer tools to improve efficiency and simplify the process of attracting funds and investing. The users then choose the most effective tools, encouraging constant development of the entire ecosystem.Each project in the Daox ecosystem is launched in the following steps:
A. Startup: Launching a fundraising campaign on the daox.org platform or via any other interface.
B. Decentralized Autonomous Organization (DAO): The campaign forms an independent decentralized autonomous
organization (DAO) on the Ethereum blockchain.
C. The funds are raised and securely stored in that DAO. Members of the DAO receive its tokens.
D. The DAO is managed through a transparent voting by token-holders.
OBJECTIVES
The principle objective of Daox is to reach a balance between investors and project initiators, to make crowdfunding via cryptocurrencies mainstream and to radically raise the efficiency of investing and raising funds in cryptoeconomy. In order to accomplish these goals, Daox solves a number of issues:
(a) Risks for investors (frequent failures, fraudulent activities, scam,funds misuse, lack of motivation in the team): The notion of DAO implies the creation often independent organization owned by the project initiators and investors. The rules of the organization are composed in a way so that the more success the work on the project has,the more each participant benefits. All the funds are stored in that organization and the startups request the required amount by submitting proposals. Thus, to continue to get the financing for its project, it is in a startup's interest to keep up with the roadmap and achieve success, while for investors it is profitable to approve the financing as the team keeps up the good work.
(b) Complexity of tech: Holding a fundraising campaign that involves cryptocurrencies requires the engagement of a development team,purchase of software, creation of a website, services for the interaction with investors, etc.Daox provides a free ready-made solution with all the necessary features for anyone, with no special knowledge or skills, to be able to set a fundraising campaign in a user-friendly interface.
(c) Marketing: An in-built affiliate network is introduced in the Daox ecosystem so that every project placed on the platform can participate in it.The network functions as follows: the startup voluntarily sets remuneration for the funds contributed to the project (as a percentage of the amount that was invested), while freelancers and marketing agencies promote such a crowdfunding campaign through their sources. Hence, small-scale projects concentrate only on their concept and presenting their product at its best, while a marketing campaign can be launched with just a single click.
(d) Low involvement of non-blockchain startups: Crowdfunding that involves cryptocurrencies is not popular among non-blockchain startups basically due to two reasons: firstly, complex technology and secondly, lack of popularity of cryptocurrencies among potential backers of non-blockchain projects. This issue is resolved by The Wallet app, which is a simple and convenient tool to interact with the Daox-based crowdfunding campaigns. The Wallet will grant the possibility to purchase DXC(underlying tokens of Daox ecosystem) for fiat money. Therefore, for the potential backers, this procedure will be as familiar as payment for commodities in an online-shop.
e) Expensive Legal Support: For small-scale crowdfunding campaigns legal services cost too much. To address that issue
an AI-based service, which enables users to generate the required documents and agreements automatically, is created as part of the ecosystem.
(f) Excessive time input: The process of attracting investments, should it be traditional venture capital investments or ICOs, requires a tremendous amount of work that does no good for the product itself. It is not profitable either for investors or project authors.
The daox.org platform and other services of the ecosystem make it possible to reduce the amount of such work to a minimum, so that project authors could do what is most important for the development of their product.
WHY BLOCKCHAIN
The following are Daox features that could not function without the use of blockchain:
(a) Use of cryptocurrencies: One of the principal goals for Daox is to simplify the process of attracting and distributing the funds in crowdfunding, when neither borders nor jurisdictions matter. This would be impossible to implement through traditional financial institutions.
(b) Absolute independence: In order to reach the required level of credibility towards the new ecosystem, the complete elimination of an intermediary between investors and project authors is required. This became possible only with the use of blockchain.
(c) Transparent voting: When it comes to centrally-controlled systems,there is always a possibility of administrative interventions. Due to all the services and data of Daox being in a decentralized blockchain network, the potential influence of administrative resources is eliminated, which means total credibility can be reached for the process of voting.
(d) Unstoppable app: Since Daox is entirely on the blockchain, there is no threat that its work will be stopped. This kind of an application is also called the “Unstoppable app”
(e) Hard-and-fast rules: The source code for Daox smart contracts is open and described in details,and since the code is placed in the blockchain network, it guarantees its invariability.
THE DAOX PLATFORM (daox.org)
This is an interface for creation and interaction with organizations, which provides all the necessary functionality, such as: creation of a project; collecting and redistributing funds; communicating with the project authors and investors, etc.
The daox.org platform is a software product that allows for the interaction with the Daox ecosystem through a simple and user-friendly interface.Thanks to daox.org there is no need for technical experts to start a DAO and support its full-scale work. All procedures, from token release for investors to voting, are already built in the code of smart contracts, and the platform provides a convenient interface for interaction with these smart-contracts.Thus,daox.org is a means of access to all the features implemented in the Daox smart contracts.
The daox.org platform offers an open API that makes it possible to integrate services from third-party developers and service providers. The main features implemented on the platform are:
Registration and user profile
Creation of a DAO
Settings and launch of a fundraising campaign
Creation and distribution of tokens
Review of a fundraising campaign and a DAO
Purchasing DAO tokens with Ether (ETH)
Purchasing DAO tokens with DXC tokens
Negotiation of requests and consideration of projects
Proposals (withdrawal requests, other types of proposals)
Review, discussion, and participation in a proposal
Integration of services and widgets via the Daox Open API
Interaction with features of the DXC token
Generation of Ethereum addresses for users
Storage of tokens and ether
ADDITIONAL FEATURES
The Daox ecosystem is entirely open, which is why any developer or service provider can integrate their services to the Daox platform.Additional features are introduced in order to simplify the process of holding the campaign, as well as to improve overall efficiency for the users of the ecosystem. They are:
Daox Integrated Affiliate Network: This program serves as a problem solver for the marketing of the crowdfunding campaigns. Any project launched on the Daox Platform can participate in the Daox Integrated Affiliate Network.
Know Your Client Service: This procedure is required for the identification of investors who participate in the crowdfunding campaigns. The Know Your Client (KYC) functionality is being implemented on the Daox Platform. Each project can activate this mode and select the degree of verification.
Automated Legal Service: Daox ecosystem will have an automated service for the standard set of documents while running the crowdfunding campaign, for example Terms and Conditions.
The Wallet App: The Daox Wallet is an app, which allows users to interact with the Daox-based organizations, trade tokens, and buy DXCs by means of a simplified interface.The main goal of this tool is to make crowdfunding cryptocurrencies widely available, simple, and popular among general public.
THE DXC TOKEN
DXC token is an ERC20 compatible Utility token, that is used solely for the interaction with the elements of the Daox
ecosystem and as a means of access to the platform services. DXC will be the main means of payments within the Daox ecosystem
Total token released 300million
Private sale for VCs and angel investors (starting April 23, 2018)
Pre-sale (June 1—June 30, 2018)
Public sale (July 1—August 30, 2018)
DXC TOKEN METRICS
Public and private sale 70%
Team 20%
Bounty & bonuses 5%
Advisers 5%
DAOX ROADMAP
May, 2017
Research and Planning of Daox
June, 2017
The Daox proof concept
September, 2017
Start of the development of the Daox platform
October, 2017
Alpha version of the Daox platform
December, 2017
Beta version of the Daox D App on the Ethereum blockchain
March, 2018
Release of the Daox platform
April, 2018
Opening the Private Token Sale
May, 2018
The first crowdfunding campaign is launched on the platform
June,2018
Opening the DXC token presale
July, 2018
Public sale of the DXC token
September, 2018
- Launch of the Integrated Affiliate Network
-First listings of the DXC token on exchanges - Launch of the Know Your Client service on the platform
October, 2018
Launch of the Daox Open API
December, 2018
Launch of the fundraising services network
February, 2019
Launch of the Automated Legal Service
March, 2019
Beta launch of the Daox Wallet app
April, 2019
Start of the yearly hackathon series
September, 2019
Launch of the Daox Accelerator for startups
Q1, 2020
Release of the Daox Wallet App
Q2, 2020
Release of the Daox exchange.
More Information:
https://daox.org/
https://daox.org/#WhitePaper
https://bitcointalk.org/index.php?topic=2811642.0
https://t.me/daoxchat
WRITTEN BY Ifeanyi5050(https://bitcointalk.org/index.php?action=profile;u=1183925)
*#daox, #dxc, #dao, #cryptocurrencies #ico *