DYCO a DAO MAKER Product
CHOOSE TOKEN
PERFORMANCE SCENARIO
PERFORMANCE SCENARIO
Dynamic Coin Offering
A DYCO offers its participants the ability to refund any token, no matter if they held them or sold them at a profit.
100% of the circulating supply is backed by USDC for the first 16 months after the Token Generation Event. The token supply remains static during this time.
If the token value falls below refund level, DYCO participants can generate risk free profits by buying tokens from the market and refunding them. Refunded tokens are automatically burned reducing the circulating supply by up to 100%.
100% of the circulating supply is backed by USDC for the first 16 months after the Token Generation Event. The token supply remains static during this time.
If the token value falls below refund level, DYCO participants can generate risk free profits by buying tokens from the market and refunding them. Refunded tokens are automatically burned reducing the circulating supply by up to 100%.
DOWN
UP
Product launch
Mirror Flip:
DYCO Participants can generate profits from risk-free arbitrage if price falls below price floor.
DYCO Participants can generate profits from risk-free arbitrage if price falls below price floor.
Buybacked tokens are burned, thereby permanently reducing supply, while bringing fresh money into the hands of the DYCO Participants.
DYCO IS CLOSED!
Dollar-backed utility tokens
Full exposure to the upside potential of an ICO
Downside protection through refunds & burns
100% of sold tokens can be refunded, till supply becomes zero
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The refundable and deflationary supply rate design of DYCOs gives tokens the support they need in the early days of a good product.
This support is gradually removed over 16 months, after which, the project should either not exist or have sufficient adoption and token demand.
This support is gradually removed over 16 months, after which, the project should either not exist or have sufficient adoption and token demand.
- Teams must be transparent & successful, or else 100% of sold tokens are refunded & burned, thereby eliminating the project
- After refunds, the only tokens left in the supply are the ones owned by holders
- Teams have to comply with their lockup terms; losing holders' confidence, results in refunds
- Team tokens unlock after final refund; circulation consists only money-backed & refundable tokens
Benefits
of a DYCO
of a DYCO
Maximum exposure to the appreciation of a project's token and downside protection covered by refunds.
All three refund dates are stated in advance. Each refund date leads to:
All three refund dates are stated in advance. Each refund date leads to:
- A refund-supported price floor
- Arbitrage opportunity for community if tokens are sold below price floor
- Money back in the hands of the community & secondary market
- Tokens removed from the hands of non-holders
- Unwanted tokens permanently removed from supply through burns
- Organic volume and liquidity, driven by arbitrage opportunity and refunds
IS DYCO A TYPE OF TOKEN SALE?
Dynamic Coin Offerings are a new standard for token sales, which will be refundable and designed to have deflationary supply.
DYCOs are for the few real builders as the refundable nature of the raise makes them compatible for only those few that aim to make something viable and lasting. At the same point, it allows long-term holders to retain their tokens at the benefit of supply being reduced by others.
An additional important factor of DYCOs is that, until the final refund date is reached, circulation consists of only refundable, money-backed tokens. Till the closure of the final refund period, teams are not able to dilute circulating supply with tokens issued to them, foundation, marketing, advisors, partners, etc.
DYCOs are for the few real builders as the refundable nature of the raise makes them compatible for only those few that aim to make something viable and lasting. At the same point, it allows long-term holders to retain their tokens at the benefit of supply being reduced by others.
An additional important factor of DYCOs is that, until the final refund date is reached, circulation consists of only refundable, money-backed tokens. Till the closure of the final refund period, teams are not able to dilute circulating supply with tokens issued to them, foundation, marketing, advisors, partners, etc.
DIFFERENCE BETWEEN A DYCO AND A REFUNDABLE TOKEN SALE
WHY DID WE CREATE THE DYCO MODEL?
In the current standard of token sales, even if a team is creating a good product, they are not held accountable for creating a good token.
By giving token sale participants the ability to refund their tokens, projects have no choice but to make a viable token. By letting people give back 100% of their tokens, which are subsequently burned, it becomes possible to push a project to complete irrelevance, if its team fails.
The refunds also create a price floor that provides organic liquidity and volume, creating a healthy secondary market. Buyers who come to doubt the long-term viability of a token and are unable to find a good price in the secondary market, can not only receive liquidity from the team itself, through a refund, but their tokens are also burned as clearly no one had wanted this supply.
Eventually, good projects are left with a firm base of holders.
By giving token sale participants the ability to refund their tokens, projects have no choice but to make a viable token. By letting people give back 100% of their tokens, which are subsequently burned, it becomes possible to push a project to complete irrelevance, if its team fails.
The refunds also create a price floor that provides organic liquidity and volume, creating a healthy secondary market. Buyers who come to doubt the long-term viability of a token and are unable to find a good price in the secondary market, can not only receive liquidity from the team itself, through a refund, but their tokens are also burned as clearly no one had wanted this supply.
Eventually, good projects are left with a firm base of holders.
HOW LONG IS THE REFUND PHASE, HOW MUCH MONEY IS REFUNDED,
AND HOW CAN THERE BE AN OPPORTUNITY FOR RISK-FREE PROFITS?
AND HOW CAN THERE BE AN OPPORTUNITY FOR RISK-FREE PROFITS?
Tokens sold in a DYCO are money-backed with 80% (refund level may vary depending on project) of the invested price for 16 months. In other words, the tokens are backed with 0.8x of the sale price.
3 refund rounds will open over the course of 16 months.
Collectively, the three rounds refund 100% of sold token (25% + 37.5% + 37.5% = 100%) for 80% of the invested money (20% + 30% + 30% = 80%).
Since DYCOs issue tokens that are backed with 80% of invested capital, they create the opportunity for a mirror flip because DYCO participants can make money even when a token goes down in price. Only people who participate in the DYCO can claim token refunds.
For example, tokens bought prior to month 9 can be refunded over the 3 rounds to claim 0.8x of ICO price. If tokens fall more than 20% below the ICO price, say they start trading at 0.7x, then these tokens can be bought and then be refunded for 0.8x, generating a risk-free profit.
3 refund rounds will open over the course of 16 months.
- 9 months after TGE, round 1 will refund up to 25% of sold tokens for 20% of the invested money
- 12 months after TGE, round 2 will refund up to 37.5% of token supply for 30% of the invested money
- 16 months after TGE, round 3 will refund up to 37.5% of the token supply for 30% of the invested money
Collectively, the three rounds refund 100% of sold token (25% + 37.5% + 37.5% = 100%) for 80% of the invested money (20% + 30% + 30% = 80%).
Since DYCOs issue tokens that are backed with 80% of invested capital, they create the opportunity for a mirror flip because DYCO participants can make money even when a token goes down in price. Only people who participate in the DYCO can claim token refunds.
For example, tokens bought prior to month 9 can be refunded over the 3 rounds to claim 0.8x of ICO price. If tokens fall more than 20% below the ICO price, say they start trading at 0.7x, then these tokens can be bought and then be refunded for 0.8x, generating a risk-free profit.
WHAT CURRENCY WILL THE REFUND BE IN?
Fundraise will be held in USDC and Refunds will be issued in USDC.
HOW ARE THE REFUNDABLE FUNDS HELD AND SECURED?
After considering a wide range of options, we have chosen Gemini Custody as its $200M account insurance is far higher than other custody services.
IS DYCO A TYPE OF TOKEN SALE?
Dynamic Coin Offerings are a new standard for token sales, which will be refundable and designed to have deflationary supply.
DYCOs are for the few real builders as the refundable nature of the raise makes them compatible for only those few that aim to make something viable and lasting. At the same point, it allows long-term holders to retain their tokens at the benefit of supply being reduced by others.
An additional important factor of DYCOs is that, until the final refund date is reached, circulation consists of only refundable, money-backed tokens. Till the closure of the final refund period, teams are not able to dilute circulating supply with tokens issued to them, foundation, marketing, advisors, partners, etc.
DYCOs are for the few real builders as the refundable nature of the raise makes them compatible for only those few that aim to make something viable and lasting. At the same point, it allows long-term holders to retain their tokens at the benefit of supply being reduced by others.
An additional important factor of DYCOs is that, until the final refund date is reached, circulation consists of only refundable, money-backed tokens. Till the closure of the final refund period, teams are not able to dilute circulating supply with tokens issued to them, foundation, marketing, advisors, partners, etc.
DIFFERENCE BETWEEN A DYCO AND A REFUNDABLE TOKEN SALE
WHY DID WE CREATE THE DYCO MODEL?
In the current standard of token sales, even if a team is creating a good product, they are not held accountable for creating a good token.
By giving token sale participants the ability to refund their tokens, projects have no choice but to make a viable token. By letting people give back 100% of their tokens, which are subsequently burned, it becomes possible to push a project to complete irrelevance, if its team fails.
The refunds also create a price floor that provides organic liquidity and volume, creating a healthy secondary market. Buyers who come to doubt the long-term viability of a token and are unable to find a good price in the secondary market, can not only receive liquidity from the team itself, through a refund, but their tokens are also burned as clearly no one had wanted this supply.
Eventually, good projects are left with a firm base of holders.
By giving token sale participants the ability to refund their tokens, projects have no choice but to make a viable token. By letting people give back 100% of their tokens, which are subsequently burned, it becomes possible to push a project to complete irrelevance, if its team fails.
The refunds also create a price floor that provides organic liquidity and volume, creating a healthy secondary market. Buyers who come to doubt the long-term viability of a token and are unable to find a good price in the secondary market, can not only receive liquidity from the team itself, through a refund, but their tokens are also burned as clearly no one had wanted this supply.
Eventually, good projects are left with a firm base of holders.
HOW LONG IS THE REFUND PHASE, HOW MUCH MONEY IS REFUNDED,
AND HOW CAN THERE BE AN OPPORTUNITY FOR RISK-FREE PROFITS?
AND HOW CAN THERE BE AN OPPORTUNITY FOR RISK-FREE PROFITS?
Tokens sold in a DYCO are money-backed with 80% (refund level may vary depending on project) of the invested price for 16 months. In other words, the tokens are backed with 0.8x of the sale price.
3 refund rounds will open over the course of 16 months.
Collectively, the three rounds refund 100% of sold token (25% + 37.5% + 37.5% = 100%) for 80% of the invested money (20% + 30% + 30% = 80%).
Since DYCOs issue tokens that are backed with 80% of invested capital, they create the opportunity for a mirror flip because DYCO participants can make money even when a token goes down in price. Only people who participate in the DYCO can claim token refunds.
For example, tokens bought prior to month 9 can be refunded over the 3 rounds to claim 0.8x of ICO price. If tokens fall more than 20% below the ICO price, say they start trading at 0.7x, then these tokens can be bought and then be refunded for 0.8x, generating a risk-free profit.
3 refund rounds will open over the course of 16 months.
- 9 months after TGE, round 1 will refund up to 25% of sold tokens for 20% of the invested money
- 12 months after TGE, round 2 will refund up to 37.5% of token supply for 30% of the invested money
- 16 months after TGE, round 3 will refund up to 37.5% of the token supply for 30% of the invested money
Collectively, the three rounds refund 100% of sold token (25% + 37.5% + 37.5% = 100%) for 80% of the invested money (20% + 30% + 30% = 80%).
Since DYCOs issue tokens that are backed with 80% of invested capital, they create the opportunity for a mirror flip because DYCO participants can make money even when a token goes down in price. Only people who participate in the DYCO can claim token refunds.
For example, tokens bought prior to month 9 can be refunded over the 3 rounds to claim 0.8x of ICO price. If tokens fall more than 20% below the ICO price, say they start trading at 0.7x, then these tokens can be bought and then be refunded for 0.8x, generating a risk-free profit.
WHAT CURRENCY WILL THE REFUND BE IN?
Fundraise will be held in USDC and Refunds will be issued in USDC.
HOW ARE THE REFUNDABLE FUNDS HELD AND SECURED?
After considering a wide range of options, we have chosen Gemini Custody as its $200M account insurance is far higher than other custody services.
We have created DYCOs because there is growing interest in crowdfunding, but none of it is directed to token sales, and instead consumed by equity crowdsales. As per our research, equity crowdsales almost always have a zero return, and the return of the entire equity crowdsale market is below 0.1x.
Meanwhile, the overall return for token sales is approximately 2x. We aim to considerably improve the market by making the DYCO the only form of token sale, so that any team in the original landscape of this market, composed of a few true builders, is reinstated. The possibility of 100% of tokens being refunded deters the fake builders who are here for nothing beyond a salary cushion.
Meanwhile, the overall return for token sales is approximately 2x. We aim to considerably improve the market by making the DYCO the only form of token sale, so that any team in the original landscape of this market, composed of a few true builders, is reinstated. The possibility of 100% of tokens being refunded deters the fake builders who are here for nothing beyond a salary cushion.
DAO Maker is an Estonia-based company with licenses for fiat-processing and cryptocurrency custody. DYCOs are a funding format for projects either incubated or accelerated by DAO Maker. DAO Maker's existing products include Social Mining, a technology used by the industry's leading startups.
The team will use its experience with the best performing projects of 2019 to limit the DYCO to only projects that have low valuations, small portion of supply for the team, a token economy that pushes cashflow from the product to the secondary market, an organic supply reduction to the token sourced from product usage, and other factors designed to create successful tokens.
The team will use its experience with the best performing projects of 2019 to limit the DYCO to only projects that have low valuations, small portion of supply for the team, a token economy that pushes cashflow from the product to the secondary market, an organic supply reduction to the token sourced from product usage, and other factors designed to create successful tokens.
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