Blockchain Ad Startup Will Refund Backers If Development Milestones Are Not Met
With so many ICOs having problems, a lot of investors associated them with scams and bad companies, so it is normal to be wary. Now, Varanida, a new blockchain startup company, is decided to offer some guarantees for its investors and has promised to give the money back to them in case the milestones of the project are not met.
According to the company, this platform was built for three main reasons: to improve the transparency for brands who advertise, increase the revenue for the publishers and to give a better experience for the public.
Who to achieve all these goals? The company believes that the right answer is to improve the online digital services and to create incentives that can be less intrusive and lead people to see what they want to. Advertising has to be interesting.
At the moment, the company is on the second round of token offerings and it uses a new hybrid model that follows the old ICO traditional format while also using the DAICO concept, which was recently championed by Vitalik Buterin, the founder of the Ethereum blockchain.
How Does The DAICO Format Work?
DAICOs are used to make ICOs more secure because they actually involve the investors more and give them more guarantees. For instance, they can vote for how the funds will be used by the company and can ask for refunds if they do not believe that the funds are being used well.
The system works in a similar manner to DAOs as trust it not necessarily just given to the team and the investors which backed the project retain power on how their funds will be used for the development of the project.
The DAICO system was initially created in an effort to mitigate ICO scams and to motivate the teams to actually deliver results. However, it is far from perfect, as the system can be easily gamed if the developers hold most of the funds or the investors are not very interested in voting.
Varanida’s CEO, Anji Ismail, has affirmed that the main goal of the company is to always improve the content and advertising market while giving the users their privacy and letting them own their data as well as providing with a great experience and respecting them. Because of this, it is important to also respect the investors, she believes, and let them be in control.
According to her, this can give an incredible insight into the people at the company and enable a community of users to decide which milestone should be the next one to be pursued. The CEO has also affirmed that a failure in achieving a milestone would automatically refund the contributors of the project, so their will is protected.
Ending Bad Ads
The main of Varanida is to give online users the control of their experiences when browsing. Today, people do not have control anymore, as their data is used by companies and they see ads that they do not want to. The company believes that the future of advertising is all about that. By seeing ads, users can receive rewards in VAD tokens and unlock premium content from their favorite content publishers.
While it may look to some people like this is not a great idea, the CEO defends that it actually is as the sites will enjoy more revenue and they can reinvest this money in engaging content to convince the users to see the ads. This way, they can use paywalls without hurting their consumers and make them informed.
This way, the users will considerably be more engaged and they will not only ignore the ads, which can beneficiate all of the involved in this ecosystem and let them explore new formats, according to the company.
Varanida’s second token round ends on October 5 and the third round will be divided into three stages, which date will be decided soon.