When companies decide to have an ICO, they must follow certain rules and guidelines. KAICO and DAICO were created for this purpose. Their major goal is to protect contributors while motivating the project owner throughout the project life cycle. These two may have some similarities in their purposes but they have different backgrounds.
KAICO is CryptoKami’s concept while DAICO is derived from DAO and ICO. This concept was brought forth by Vitalik Buterin in 2018. KAICO concept was proposed earlier on in 2017 by Hiroshi Kobayashi. Both concepts have played a major role in ensuring that ICO projects are objective, impartial successful.
DAICO is an improvement of KAICO, especially in the functions. DAICO was created after associating the Decentralized Autonomous Organization with ICO. KAICO’s main objective is to ensure that the project development team remains committed throughout the cycle. At the same time, the contributor remains protected. Looking at DAICO, the concept has more rules than KAICO.
Buterin intended the concept to allow contributors with tokens to vote. If voters are not contented with the development process, they are entitled to reimbursement. This makes the project development team accountable to the investors. These measures ensure safety and reduce risks for investors. By having additional rules and responsibilities within DAICO, ICO projects are running more efficiently than before.
The KAICO and DAICO concepts are not only beneficial to the investors. They play a major role for the management. By having these guidelines in place, the management knows what to do during ICO. They will also avoid issues or instances that will cause problems.
Rules and regulations for ICO will continue changing depending on the project and contributors. The aim of making changes is to increase effectiveness and fairness to all parties participating. Companies are looking forward to ICO projects that will be easy to run and manage.