In our prior posts, we looked at many issues that have adversely influenced the blockchain community. Between the novice CEOs, scammers, money-hungry investors, and unfeasible projects, it's not hard to see why so many blockchain projects fail before they really take off.
If blockchain technology is ever going to receive mainstream support, there first needs to be a clean break from the lawless, cowboy image that's been associated with cryptocurrency since its inception. Unfortunately, this is easier said than done. Many of the dilemmas which plague blockchain start-ups have become entrenched in the early days practices of the industry.
Appealing to high-risk investors, not people interested in the technology.
Too much focus on maximizing profits, not enough attention to building a loyal following.
Spending more time hyping projects than actually delivering on assurances.
To solve these dilemmas and increase legitimacy in blockchain projects, we're proposing a new solution: the Distributed ICO. By addressing these issues in the early stages of a project's lifespan, we can reduce the obstacles standing in the way between blockchain technology and well known adoption.
How does the Distributed ICO work?
The Distributed ICO pursues to keep blockchain projects on the suitable course, from their original stages all the way to their public release-- and beyond. It does this by making sure that the interests of the project leaders are lined up with the interests of the investors at all times. That way, there's no mystification about which direction the project should take.
Here's what makes the Distributed ICO different from traditional ICOs:
- Project financing is based on the resources a project needs to reach the end of their roadmap. No more newbie CEOs asking to raise tens of millions of dollars to release a yet-to-be-defined, might-happen platform.
- Funds plans are separated and sub-divided into periods and rounds. During this time, there are only a specific number of tokens accessible.
- Projects receive financing in installments that materialize if-- and only if-- they keep their pledges with investors.
- Token holders are allowed to vote on the direction of a project at the end of each round.
Ultimately, the Distributed ICO helps keep developers, executives and investors on the same page throughout the life cycle of the project. What's more, it requires additional organization and working together between the blockchain start-up and their investors. As a benefit, this helps to control scope creep and inattentive mismanagement of resources.
The end effects is an investment program and project roadmap performed within a smart contract that raises clarity from start to finish, while eliminating the probability of investors falling victim to opportunistic scammers.
In other words, the Distributed ICO brings the project management techniques of enterprise-level organizations into the realm of blockchain start-ups. And by doing that, it sanctions blockchain technology and makes it a more eye-catching option for traditional investors.
Want to learn more about Distributed ICOs? Or probably you're interested in learning how to run a helpful marketing campaign for your blockchain start-up? ICO Success can help.
Stay tuned for more in-depth articles explaining just how Distributed ICOs work!