A new transformative protocol for initial coin offerings (ICOs) has been revealed to the public on white paper.
The protocol developed was a joint effort between Ethereum’s founder Vitalik Butrerin and TrueBit developer Jason Teutsch. Their hope is to establish an “equilibrium” between uncapped and capped token sales.
The authors of the white paper describe in detail a structure by which an ICO could respond to the actions of buyers. Furthermore, buyers would propose a valuation table by means of a smart contract that permits them to make purchases proportionate to a real-time valuation.
In simpler terms, the new protocol gives buyers the option to withdraw past bids on tokens, while being able to evaluate the buyers stake corresponding to the entire ICO and shuffling bids accordingly.
It seeks to deal with the issues of ICO sales selling out too quickly, or not at all.
This protocol is in its very initial stages but it follows a surge of ICOs recently that have stoked optimism about the potential to democratize venture funding.
On Medium, Teutsch spoke to the gap between the bigger vision and the present state, writing:
“Cryptoeconomic research opportunities abound on both empirical and deductive fronts. Systems must “prove” security and effectiveness by enduring the test of time in order to become crypto economic “theorems.” On the other hand, pioneering protocol designs require rigorous analysis to ensure a good chance of success. I hope that the present foray into algorithmic game theory will encourage our community to continue to think explicitly about assumptions and goals for crowd sales as we experiment with and build upon the trustless, crypto economic power of smart contracts.”
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