Teams have a few avenues for funding
ICO’s - investors take a risk, and get the benefit… until the team runs out of money
Airdrops - teams hope the functionality they make, gives their crypto a value, which motivates them to work, until they run out of funding
Governance-Voting - everyone votes, if they win, it’s developed for the whole ecosystem. (even though some people dont think the risk is worth it)
How about we introduce a new method:
Temporary Coins - An ICO, where there’s a set time-out.
Initially, early investors take a risk and get profits if it works out.
At the end of the set time, the coin’s get bought out by the main coin (ADA) at a rate agreed by voters on both sides just before the timeout, the functionality that was being purchased with the created coin, can then be performed with ADA. this encourages the governance system to keep supporting the new functionality / team members.
How do you think Temporary Coins compares with the DAICO proposed by Vitalik ?
If I understand correctly, in what Vitalik is proposing is that the funds for the team can be cut off from the investors at any date, then the funds re-allocated as needed and/or released with the vote to self destruct.
What I’m proposing is a defined termination, wherein, once the teams contribution is finished, or funds are no-longer available to them the ICO holders reap investment rewards for a defined time period, at the end of that time period, a fair arrangement is made via a voting mechanism for fair price to destroy the token, and pay out token holders in the main coin. It would be similar to Buying shares in a join-venture company, partly funded by a parent company and venture capitalists that openly declared, it would work towards a merger-buyout after 5 years of successful operation with the parent company.
The merger buyout mechanism would need some game theory done and likely need to be a mechanism built into the main coins governance functionality, to figure out how to encourage fair pricing on both sides, also, how this would be performed if there was inadequate treasury funds available (would the merger wait, would it only be partly fulfilled, would new coins be created to accommodate?)
It sounds like my idea needs an acronym to be more formal. how about planned merger, PM-ICO