A large number of companies were birthed through crowdfunding platforms but over the years the industry has been riddled with reports of underhand dealings and fraud. One crypto project is poised to flip the script without skipping scenes using a new twist on a DAO.
GoCryptoME, a decentralized autonomous organization (DAO) is looking to improve the quality of crowdfunding for projects. The project is using the decentralized nature of DAOs to deliver on the promise with smart contracts as the foundation.
According to the DAO, the owner of the smart contract is the only person that has access to the realized funds. This stands in contrast with other crowdfunding platforms that often take a percentage as “running costs.” Giving total control of funds to creators on the platform connotes the democratic nature of DAOs but there could still be the problem of raising funds for illegal campaigns.
To combat this threat, GoCryptoME members are bestowed with the power to vote and remove campaigns from the platform that are deemed illegal. This is the only way the DAO can interfere with campaigns as it does not have the power to stop funds from going to campaigns that scale the voting process as it is governed strictly by smart contracts.
“If anyone tries to do something that’s not covered by the rules and logic of the DAO’s code, it will fail,” reads Ethereum’s blog on the nature of DAOs and smart contracts. “And because the treasury is defined by the smart contract, too, that means no one can spend the money without the group’s approval either.”
“This means that DAOs don’t need a central authority. Instead, the group makes decisions collectively, and payments are automatically authorized when votes pass.”
Pushing the DAO frontier
GoCryptoME goes on to introduce a staking platform for the GCME/USD token in addition to the already stellar features that it offers. According to the team, token holders that stake their tokens are eligible to receive rewards.
“Revenue share from the GoCryptoME crowdfunding platform feeds reward into the staking pools in real-time via smart contract technology,” the team said.
“As holders lock in their tokens, the price floor increases as there is reduced selling pressure overall due to the majority of holders staking their tokens,”
The crowdfunding industry garnered over $250 billion in 2021 with the figure expected to triple over the next four years. Projects like Oculus, Pebble Time, and Frosthaven are some of the most successful projects on Kickstarter raising millions of dollars.
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