Reversible ICO (rICO)
Basics
"The new "Reversible ICO" has been approved by German regulators, bringing new on-chain investor protections to the controversial fundraising mechanism. rICOs allow investors to buy tokens gradually and rescind their support and funding at any time.
Developed by Fabian Vogelsteller, the mind behind the original ERC-20 Ethereum standard, the rICO enables investors to reserve tokens during one phase of the offering, then buy them over time during a second phase. If for any reason investors decide they no longer want to support the project, they can release the remaining tokens they have reserved and have their corresponding ETH returned.
Vogelsteller initially broached the idea for reversible ICOs at Devcon in 2018.
The first rICO will raise funds for LUKSO, an Ethereum sister network designed to make mainstream decentralized applications more usable for creators and trend-setters. That rICO is set for next month, which prompted Vogelsteller to publicize an interchange he had with BaFin, the German equivalent of the SEC. Vogelsteller had asked the regulator for a ruling on whether rICOs were legal. On January 31, he received a reply saying that its approval wasn't necessary—which is as good as approval, Vogelsteller said. “Actually the regulators really like it because the whole point of what they are doing is trying to keep people safe, right? And that’s what the rICO is designed to do,” Vogelsteller told Decrypt."
- From The Defiant (19-2-2021):
"LUKSO’s Reversible ICO has ended with nearly $18M USD collected."
