Co-founder of one of the most promising cryptocurrencies and creator of Bitcoin’s main competitor, Ethereum, Vitalik Buterin steps down from China-based venture capital Fenbushi Capital.
23-year old Russian-Canadian programmer and writer primarily known as a co-founder of Ethereum and as a co-founder of Bitcoin Magazine, has decided to focus on Ethereum’s development. According to Buterin, the fast increase in Ethereum’s price has resulted to many people in the community now focusing on price rather than the product’s performance, hurting the cryptocurrency’s future potential.
Buterin has repeatedly called on the Ethereum community to focus on building a product rather a “navel graze”. Since December, he has tried with his social media posts to start a conversation on the blockchain’s true potential.
“I expect 2018, at least within the Ethereum space that I’m best able to speak about, will be the year of action,” Buterin said at a TechCrunch interview. According to the programming pioneer, 2018 will be the year where all of the ideas will be around scalability, Plasma, proof-of-stake, and privacy. The community has worked on this for four years and Buterin suggests it is high time that this will turn into “real, live working code that you can play around in a highly mature form in some cases on testnets, and in some key cases even on the public mainnet.”
“Everyone in the Ethereum space recognizes that the world is watching, and we are ready to deliver” added Buterin.
Towards the democratization of crypto ICOs
As the finch industry rapidly grows, Buterin sees the model of Initial Coin Offering (ICO) desperately needing change. ICO is the way startups bypass capital-raising process required by venture capitalists or banks, while ICOs increasingly remain a matter of trust between crypto-creators and investors.
Buterin has now proposed a new scheme of governance, which would prevent outright money grabs from projects with little chance of delivering, by combining the Decentralized Autonomous Organization with the ICO, achieving a model dubbed the DAICO. This way investors will be better protected against fraud.
“A DAICO contract is published by a single development team that wishes to raise funds for a project. The DAICO contract starts off in ‘contribution mode,’ specifying a mechanism by which anyone can contribute Ethereum (ETH) to the contract, and get tokens in exchange,” said Buterin.
How could this be done? Buuterin suggests that DAICO could be done via a capped sale, an uncapped sale, a Dutch auction, an interactive coin offering, or another mechanism. “Once the contribution period ends, the ability to contribute ETH stops and the initial token balances are set; from there on the tokens can become tradeable,” explained Buterin.
Beyond distributing tokens as widely as possible, democratizing an ICO would include the newly proposed mechanism of “taps” – a way to control how much of the ICO finds are spent at various stages of the project.
This is not the first time Buterin tables proposals to tackle ICO frauds. After Confido and Fantasy Market ICO frauds, Ethereum co-founder suggested that using half the tokens for development and frontloading revenues, and then buying back the rest of the tokens could limit risk for investors.