IPO vs. the right to vote [Serie Teil 2]
article read ICO – let:
IPOs and ICOs have much in common, but also fundamental differences. In our post series, we explain the main differences from the initial public offering (IPO) on the Exchange and an initial coin offering ( ICO) on the Kryptowährungsmarkt. Current content: the right to vote – the participation rights through shares and token.
overview of ICO vs. IPO series
part part 1: the purpose and the use of
voting rights a stock is usually not only a share of the company, the has of the holder, but also a right to vote, which is granted as a result. In the case of a classic stock, the Anteilshaber can thus participate in decisions at the annual general meeting of the company. His votes are weighted with the proportion of shares, so has more shares, the greater the power of decision. This is in fact similar to the proof-of-stakeholder consensus algorithm, in which participants in the network can decide about the consensus weighted with their credit.
There are certainly non-voting shares which represent only be entitled to the dividend, but securitize any voting rights. However, this is an exceptional case.
Voting rights at ICOs?
How it behaves but when ICOs and our tokenized “minority”?
In the classic case of ICOs, a voting rights will not automatically represented with a token. No matter whether the token a so-called utility token (token is required to use the services) or by default have no possibility to take part in votes in a security token (token as a share of the profit distribution),.
DAICOs: ICO + DAO
DAICOS the combination of ICOs with a DAO (decentralized autonomous organization) are a very new concept. The combination of the two technologies was proposed by Vitalik Buterin, to give a better framework of implementation of ICOs. In conventional ICOs full responsibility for the collected money investors left the project team as soon as the token sale is completed. This leads partly to improper use of financial resources.
To avoid this, token owner should be involved in decisions about the use of the money, so can vote on the DAO method. Smart contract a so-called tap value is set in one of these. This indicates how many Wei (smallest unit of ether) per second to the team will be paid out. Investors with the course of the project are satisfied, they have the opportunity again to pay off their remaining capital of the investment – also the contract also smart.
In fact, the DAICO principle is more in the direction of a shareholding with associated participation rights.