DAIDO is a form of Launchpad developed from the symbiosis of IDO and DAICO. The idea of its creation was voiced back in 2017 and became our answer to the problems of the cryptocurrency investment market. The ICO boom brought the crypto industry not only such significant projects as Ethereum, NEO, IOTA and others, but was also associated with a number of frauds.
Market problems, or what’s wrong with IDO
The introduction of DAIDO was not an impulsive decision in pursuit of trends. It was dictated by real problems in the market experienced by both investors and project owners. Everyone who wanted to create something useful and necessary for the further development of the crypto industry experienced similar difficulties in nature.
In 2021, the volume of funds raised by crypto startups exceeded $1 billion. At the same time, IDO (Initial DEX Offering) remains the most popular form for collecting initial investments. IDO is essentially similar to ICO, which boomed in 2017. However, both forms of crowdfunding had one significant drawback - the lack of full control over the funds raised.
Moreover, some startups turned out to be outright scams. PeckShieldAlert experts that organized the IDO and identified more than 50 companies that could become a scam in the near future. According to experts, [7 IDO platforms have already been recognized as fraudulent], and the total damage from the actions of fraudsters has exceeded $2.6 million.
A popular form of IDO crowdfunding provides many loopholes and ways to misuse investors’ money. For example, misuse of tokens based on the tokenomics of projects, gaps with a liquidity pool in a couple of months.
DAO.vc offers users a new form of crowdfunding - DAIDO, which has replaced the imperfect IDO and ICO.
DAIDO (DAO Initial Dex Offering) is a form of Launchpad built on the principles of a decentralized autonomous organization in which all decisions to invest in a particular project are made on the basis of voting.
- If the majority of DAO platform holders voted for investing in project A, then they send the cryptocurrency to a single token pool and receive startup A tokens in exchange.
- At the first stage, the startup receives only a limited part of the funding, which should be directed to the implementation of the activities planned in the project roadmap.
- As the next key activities are implemented, project A receives the next tranche. Entrepreneurs receive the final amount only at the end of the project and the launch of the product on the market.
A token pool, or a vcDAO community pool, is a tokenized portfolio on the blockchain with tokens of all projects that DAO.vc acquired allocations. The pool is formed and managed by holders of governance tokens.
Partner funds are used to incubate blockchain startups, which then enter the market. Partners receive tokens, as well as % of the remuneration of all startups admitted to incubation.
DAIDO allows you to invest in IT startups and blockchain projects without having to invest more than $1 million, and without the risk of failure of one or more startups, since you invest in their index.
How the DAIDO model is implemented on DAO.vc:
- project financing is carried out through the use of tokens located on a smart contract;
- funds are not issued immediately, but as the project roadmap is implemented;
- thanks to the DAIDO model, every startup can apply for listing on DAO.vc;
- after processing by experts and checking the project for fraud, the application will go to all owners of the governance token;
- in the voting section, they will be able to vote for or against the inclusion of the project in the index fund - according to the principles of DAO.
At the moment, this form of Launchpad as DAIDO is supported by the decentralized autonomous venture ecosystem DAO.vc, which is the first to implement this mechanism for raising and distributing funds.
The first projects supported by independent investors and members of the DAO.vc platform will appear in the next 2–3 months.
What do startups get in the DAO.vc ecosystem:
- funding from DAO.vc partners as part of the LaunchLab incubation program;
- access to the most talented specialists;
- the ability to publish information about the progress and news of the project;
- ratings and reviews from leading industry experts.
What do investors get in the DAO.vc ecosystem:
- access to the best projects in the field of IT, DeFi and the blockchain industry;
- direct communication with startups and the ability to create your own investment proposals;
- bonuses for participating in a large pool;
- access to the best specialists in the market.