In my first article, I told you about community building and social mining, which are indispensable in blockchain, especially for next-generation blockchain network projects. This article will discuss the Dyco Token sales model designed and implemented by the four smart men who make up the DAOMaker core team and their talented, disciplined, and believing teammates who surround them.
The miracle of daomaker in developing communities of projects, apart from social mining software, is that the token sales model, which almost guarantees that every interlocutor in the blockchain space will win, is a product of real genius. In 2020, first implemented the DYCO Token sales model for the ORN token of the Orion protocol. The Investor model’s positive effect resulted in rapid growth in the token price well ahead of expected Dyco’s newly developed model, dyco V2. It was implemented as a sales model of DAOMaker’s own DAO token. One and the second rounds of the DAO Token will complete; the third round will be held in early 2021. DYCO V2 contains very well calculated benefits in the crypto market primarily for investors, but for every cut in the market. The DYCO V2 token sales model is to win, win, win for every relevant party (Team, Investor, Holder, and Trader)
Minimizing Early-stage Investment Risk In Blockchain Projects
Especially during the extended bear season, which began at the end of 2018, the blockchain space’s biggest problem was that projects could not find investors. Projects that could not find removed enough initial capital were drawn to the libraries’ dusty shelves before implementing it. The reason investors have long moved away from the crypto market is because of the scarcity of well-designed projects and the emergence of rogue groups that have benefited from a lack of regulation. Between 2017–2019, the number of investors who lost all their funds invested in projects is quite large. In crowdfunding, this period’s Initial Coin Offering can be called the ICOs period. In ICOs, where projects raise funds only through the whitepaper, project teams have no responsibility. There is also no regulation to protect the Investor. The result, naturally, was a complete disaster. After the ICO era, crowdfunding investors were significantly insecure about blockchain projects, and cryptocurrency exchanges developed a new crowdfunding model. (Initial Exchange Offering)in this funding model, called IEO, exchanges have taken on ensuring the trust of investors. Projects in particular, where large Cexs decided to list, quickly began to attract investors. Many projects doubled the ICO price on the day it was listed. As a result of the thorough reviews of the exchanges to list projects that can succeed, the projects sold in the IEO have achieved relative success. Because the exchanges were afraid to list without believing in the project’s team or the project’s vision, they would compromise their own companies’ credibility if they chose projects that disappointed investors. But over time, objectionable sides of IEOs also began to appear. ICO prices, especially for private sales of a funded project by listing on a single exchange, were quickly raised by pumping on the day it was listed on the exchange. Thus, investors who could not receive tokens from the private sales of this project received tokens at the artificially created price, and sometimes this caused significant losses. Another disadvantage of IEOs is the monopolization of stock markets. Listing your project token has almost cost a fortune, especially on exchanges that attract big investors. Although the idea or product he developed, in this case, was inspiring, small market projects couldn’t enter monopolized exchanges. It has also become almost impossible for projects that do not have a chance to be listed on these exchanges to find funds.
In this environment, DAOMaker has introduced a token sales model that can be a source of funds for teams that do not have an initial capital but rely on their project and technical competence. This sales model called dynamic Coin Offering (DYCO) offered project teams attractive opportunities as start-up funding. At the same time, investors were given a chance to invest in promising projects that significantly reduced risks. Let’s look at how the DYCO V2 token sales model, which provides a solution to the most fundamental problem in the Crypto market, gives all parties a chance to win.
Dyco Token sales model ( everyone will win!)
Investors: the most crucial feature that distinguishes the dyco token sales model from an ICO or IEO is that it gives Buy-Back, i.e., repurchase. Investors who have received tokens of the project by entering Whitelist, starting from the date of listing the project, if the price of the token falls below the price they received within a predetermined period, the tokens in the investors are returned, and 80% of their investment is repaid in dollars. This provides a revolutionary advantage for investors, especially considering the damage caused by tokens that have been garbage taken from ICOs.
Trader: in the well-thought-out design of DYCO V2, the interests of all different segments of token-holding habits are well observed. In the DYCO V2 model, investors are initially given 20% of the tokens they buy. Locked tokens are opened to the Investor every three months at rates of 16%. In this way, volatility in the token price entering circulation is balanced by spreading over time. But for traders who tend to buy and sell in the short term, Version 2 also offers a solution for those who want to reach Toll Bridge tokens immediately. Traders who wish to locks opened directly get early access to their tokens by waiving only a small amount. At Toll Bridge, tokens that are not given to those who leave early for a fee are burned. The token price supports an upward trend in the secondary market by reducing supply for holders who have a long-term habit of holding incineration tokens. Besides, traders who access their tokens with toll bridges prevent the bubble of the token price in the secondary market from creating an insecure price impression that may arise from the overvaluation of the token over time.
Project team: projects that accept a guaranteed repayment funding have no problem finding investors. During the listing period, the price of the token increases significantly in the secondary market. They are in constant development by adhering to the roadmap with the repayment commitment’s driving force. Another feature that gives the team an advantage in dyco is the opportunity provided by those who access it early. If the token rises faster than expected, the number of early departures using the toll bridge will increase. The dollars in the repayment commitment, which must be stored until the end of the distribution, will also be unlocked early for the team. Thus, increased funding revenue will further accelerate the team’s work on developing the project.
Mirror Flip feature: The Mirror Flip, which is also included in the first version of the DYCO model, is excellent support added to the Investor’s model. People who receive tokens from the Dyco Token model are registered with the Whitelist. Through their wallets in this list, they can return tokens whose price has fallen below the ICO price, thus minimizing the possibility of their funds being damaged. People who receive tokens from the DYCO model can sell them on the exchanges where they are listed. But even after the sale, if the token falls below the ICO price, the Investor has the right to ask for a buyback in dollars since their locked tokens will be affected. When such a situation occurs, the user enters the buyback system by taking cheap project tokens from the market instead of the tokens he sells and receives his funds in dollars. Buybacks that happen in this way have a chance to Flip the Mirror. Let’s explain by example. You sold tokens purchased for $ 1 at the ICO price on the stock market. Suppose the token ICO price drops below 40% at the end of 90 days. An investor takes a token from the stock exchange for 60 cents, uses its right from Whitelist, and returns 80 cents for each token. (was initially gave 20% to the project team), thus earning 20% of the money from the falling price. It’s called” Mirror Flip.” In other words, it would be as if the Investor had sold the project token for 20% more expensive.
I’m going back to the beginning of the first article. A Blockchain project's persistence is directly proportional to many factors and Blockchain technology, and the benefit it adds to the crypto market. DAO Maker first showed how to develop a vital community for all projects, creating its platform. Dyco has made a very well-designed, risk-minimizing exit in crowdfunding with the token sales model, which will shed light on the period of recession in the crypto market after that.
With the launch of the DAO token starting in 2021, we will talk about DAOMaker’s products such as Venture Bond, reward pool-supported ecosystem, and equity venture funding, which are much further ahead in future articles. We still haven’t talked about the rSHOs. It will also be discussed in the next article.
I want to finish this article by commemorating the four smart guys who have written their name in Blockchain history with their designs that will support every project, every crypto of the field, and the DAOMaker team that closely supports them, and finally, our community, which are fans of Daomaker.
I wish everyone a good year!
Thank you for reading. By N.ipek Celik