In the year 2017 we saw a skyrocketing growth of the amount raised via Initial Coin Offerings (ICO). The reason for success is obvious: ICO is the most convenient way of investing and raising funds nowadays.

However, its current implementation (as a crowdfunding or in other forms) has a number of challenges, such as: complexity of tech, expensive marketing, investment risks, low success ratio, fraudulent activity, volatility of cryptocurrencies, unpopularity, and of course tons of scam. These and other problems are a constraining factor for the vast amount of projects and investors that could participate in a new cryptoeconomy and significantly boost it.

This is why we have launched Daox — a fundraising ecosystem and a platform that provides a complete solution for crowdfunding based on the concept of a decentralized autonomous organization.

So, the main distinctive feature of raising funds in the Daox ecosystem is that each startup and its investors interact via a separately created decentralized autonomous organization on the Ethereum blockchain.

How it all works? Complicated, but we made it easy. Each project in the Daox ecosystem is launched in 3 steps:

Startup is launching a fundraising campaign on the platform. The campaign forms as an independent decentralized autonomous organization (DAO) on the Ethereum blockchain. The funds are raised and securely stored in that organization.

After the fundraising campaign is finished successfully (in case the targets were reached), the team of the project is granted a possibility to start requesting withdrawals. These withdrawals are being approved or declined by investors. All these interactions with the ecosystem are made via daox.org platform — an easy-to-use service that allows to do all the necessary stuff.

But even though the implementation of a DAO concept is what the ecosystem based on, it is not the only feature. Another major thing is the Open API for the Fundraising Services Network.

What is it? Well, the daox.org platform, as well as other tools for interaction with the Daox ecosystem are just interfaces and cannot affect its operating procedures. Any developer can release his own interface (as an app or a service), which will enable the interaction with the Daox ecosystem.

There are also tools represented on the platform (for example an affiliate network). These tools are third-party services that users of the platform could optionally resort to. Service providers and developers can integrate their services in the ecosystem by means of an Open API and they’ll be listed in a Fundraising Services catalogue on the platform.

Thus, on the one hand the Daox ecosystem has interfaces that allow for the interaction between users and Daox-Organizations; on the other hand, there are service providers and developers who offer tools to improve efficiency and simplify the process of attracting investments. The users then choose the most effective tools, encouraging constant development of the entire ecosystem this way.