Meet The Decentralized Fundraising Platform DAOx Project
Blockchain technology has launched an irreversible process of radical changes in economics and finance. New opportunities have emerged for the development and increased efficiency of investment and fundraising.
The first examples of implementing these options are ICOs. However, the appropriateness of the current approach has been questioned in recent time.
In ICOs and crowdfunding, authors of the projects receive funds in full. This leads to many problems, such as decreased team motivation, misuse of funds, and fraud.
The most balanced solution to these problems is the use of the DAO principles of decentralized autonomous organizations. With proper design, fundraising in the DAO significantly reduces risks, thereby increasing investor attention. At the same time, the team’s interests are firmly protected by the rules, which are outlined in the blockchain.
The DAOx project implements these ideas based on the Ethereum blockchain. Even though DAOx project aspires to solve other challenging tasks, it is also perfectly suitable for DAICOs implementation and decentralized crowdfunding. By using the platform, the authors of the project create independent decentralized autonomous organizations and attract investment to them.
Each organization produces its own tokens. The number of tokens and their values are determined by the sponsors. After successful fundraising process, authors are able to start publishing the proposals to withdraw funds, and the token-holders approve them by voting.
The tokens created by each organization are compliant with the standard ERC20; therefore, the tokens can be transferred to other Ethereum users or listed on the exchanges.
Fundraising is more efficient using DAO because the team’s credibility increases, and the projects are located in the DAOx directory and, thus, receive immediate attention from investors.
Running the organization with all operations does not require the participation of technical experts. The entire process—from issuing tokens for investors to voting—is already incorporated in the code of smart contracts.
The interface for smart contracts is implemented on the DAOX platform. The process of creating a new DAO, with all the necessary functionality, may take several minutes. The DAOx service implements a user-friendly interface for all activities, including voting, withdrawals and discussions.
It is important to note that any of the DAO is completely independent. All the procedures for creating the DAO, including issuing tokens and transferring and returning funds are in the blockchain.
Neither the DAOx team nor any third party has access to the funds in the DAO. Furthermore, no one can affect the pre-established rules of the organisation.
The source code for the smart contracts is completely open and available for examination by security professionals.
When planning a fundraising activity, whether it is crowdfunding or ICO, it definitely makes sense to explore the benefits of the approach provided by the DAOx project.
The project beta is already online at www.daox.org
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