Many companies are using the potential of the blockchain technology for the creation of innovative products and services. DAOx is one of these companies and we are going to review it today on our blog.
What is DAOx?
DAOx is the name of the company which has recently created a decentralized fundraising ecosystem on its platform. The company uses blockchain to create a fundraising business platform that can provide an interesting solution for Initial Coin Offerings (ICOs) and to crowdfunding initiatives in general around the globe.
The mission of the company is to utilize the current blockchain technology to find new ways to make mass investment better. Basically, the idea is that the company will create an ecosystem in which there will be fewer restrictions for fundraising. Things like restriction because of geographical or legal restrictions will be things of the past if this company can really succeed in its goals.
How Does DAOx Work?
DAOx will work based on the simple principle of the “decentralized autonomous organization” (DAO) which is actually why the company has its name. Any startup will be able to create, together with its investors, a DAO on the Ethereum blockchain used by the company to built its platform.
This will enable the authors of the projects and their investors to become real shareholders of the organizations created using the DAO system. There will be an executive team to run the process will which can make withdrawals, but only if they are approved by the investors. This will create a community in which the investors will have real power over their investments.
After the project is finished, then the authors of this project will be able to distribute tokens and paying dividends just like they would do if they have made an ICO. This system ensures that it will be easier for the companies to fund projects and easier for the investors to know that the money that they give to the company will be used well, which will be a win-win situation for them.
The company states many cases in which its platform could be successfully used: for startups using blockchain technology; for distribution of tokens after an ICO; funding of non-blockchain inventions; traditional investments for equity in a company; and even more mainstream projects like the fundraising of money for a residential complex that will be owned by the token holders.
The idea of the company is that the online platform will be the gateway between the investors and the companies seeking funds. Anyone will be able to use the services for free. It is important to note that absolutely anyone can use this platform, but there are some rules.
Even if you can use the platform, your project will only be public after it has been approved by the moderation of the platform. This attitude was a way to make the environment more secure for the investors because only projects with a high quality would be able to actually participate in the platform. The bad one would be excluded.
This platform can be an effective way to fundraise projects because it enables for the creation of an environment of full security for everybody involved. The investors, by having the ability of managing the funds of the company, will have more control that they would normally have on almost any platform or device. This makes it even better than Escrow and other platforms like it.
A final and interesting feature that this company has is the possibility of taking your funds back. If you are an investor and you and the majority of the investors think that your money is not being used well, then you will be able to cancel and dissolve the DAO and take your remaining tokens back. On the other hand, this will kill the project, so it has to use with moderation.
DAOx never charges fees from its users, except on one occasion. Anytime time that an investment is finalized (and only then), 4% of the funding will go to the company. This is important to ensure that the company is interested in the success of the projects (this money will not be given back in case of the dissolution of the DAO).
How to Invest in DAOx?
If you are interested in investing in this company, it is very important that you acquire the DAOx tokens during the company’s ICO. The company has still not made public the prices or dates for the main sale of the ICO, but you can already register using your email address to participate in the pre-sale, in which you will be able to buy tokens with discounts.
The DAOx tokens are ERC20 standard, meaning that you would be able to sell them in any exchange because they are based on the Ethereum blockchain.
The DAOx Verdict
Is this company a good investment for you? It is, we are sure of that. DAOx seems like a platform managed by very competent people which really know how the market works. Also, the company has a very solid business plan, so this is almost a guarantee that the company will achieve a certain level of success.
The idea of DAOx is also excellent. This is one of the most interesting ways to deal with crowdfunding so far because it really empowers the investors, which can make much more easy for the companies to determine how they are going to deal with the development of the product.
If you liked DAOx, there is no need to think twice before investing. This can be a great company to invest in, you should just be well informed about the price of the tokens first. If we have any updates, you will surely know them if you follow our blog.