It is hard to argue the fact that ICO, as the method of token distribution, has already run its course. The Initial Exchange Offering, which seems to have become the new talk of the town, also displays some flaws, for instance, the exceedingly fast realization of tokens, which sometimes takes less than a minute, which literally deprives the ‘average Joe’ investor of a chance to buy the tokens at his own speed.
In any case, the need for an alternative solution seems imperative, and NuCypher, a blockchain project for designing infrastructure for privacy-oriented dApps, might just have arrived at one.
NuCypher published a proposal in their corporate blog describing a new concept for token sale and their further use, which they called WorkLock. The essence of the proposed distribution model is quite simple:
It is inherent to human mentality to be more committed to the success of a project when having a material stake in the given venture. NuCypher didn’t have to re-invent the wheel in that regard. However, they did present an interesting solution that might help mitigate the risk for the blockchain projects of being forced into submission by the regulatory authorities.
Basically, the introduction of ETH escrow creates plausible deniability that the actual investment of funds had taken place. Therefore, it should be much harder for law enforcement agencies like SEC to categorize the token sale carried out under the WorkLock scheme as an unregistered securities offering.
But, obviously, NuCypher is not inventing the way to bypass the law, their intentions are purely benevolent: to provide for better regulatory compliance and incentivize the users to take an active part in the development of a blockchain project instead of just acquiring tokens for speculative purposes.
The NuCypher team placed a particular emphasis on the fact that WorkLock is still a theory in progress that might require alterations and improvements. But it is definitely a step in the right direction towards resolving the issue of misapplication of tokens which hampers the blockchain industry.
|Exchange||Volume change, 24h|