One of my favorite people in the cryptocurrency space is Vitalik Buterin. His persistence applying his vision for how he sees the world working in the future is admirable, and his latest idea around the DAICO is no less visionary than Ethereum itself.
The Problem with ICO’s is that once the funds have been raised, there didn’t exist any mechanism for investors to control the Use of Funds and so the openness of the marketplace allowed pundits and scammers to defraud the public, particularly in these early days of the ICO.
In an effort to achieve full decentralization in the crowdfunding world, Buterin recommends building smart contract logic into the ICO, including how & when funds are used ,so that – if milestones aren’t met – the risk to the investor community is minimized. For a more in depth read, I point you to his DAICO post from the Ethereum Research Forum here.