The developer that formalized the code underlying most initial coin offerings (ICOs) – ethereum's ERC-20 token standard – has proposed a new approach in a bid to make the funding schemes more safe for would-be investors.
Speaking in Prague on Tuesday at Devcon4, ethereum's annual developer conference, developer Fabian Vogelsteller proposed a "reversible ICO," or RICO, that would allow token investors to take back their funds at any stage in that project's lifespan. Specifically, the concept involves the creation of a special-purpose smart contract that allows investors to "reverse their funding commitment."
"You are able to withdraw the funds you committed at any point of time and you do this by simply sending back your tokens," Vogelsteller told the audience.