Each project in the Daox ecosystem is launched in the following steps:
Each startup and its investors establish their own Fundraising DAO and receive its tokens. Right after the DAO is formed, the governance procedures are accessible via any Ethereum client or the Daox Network.
Each genuine Fundraising DAO could only be deployed using the Crowdsale DAO Factory smart-contract on the Ethereum blockchain. In this way it is guaranteed that the operating rules of the DAO remained unchanged. The deployment could be done either via the Daox Network in a user-friendly interface, or independently via any Ethereum client.
Right after the DAO is created, its author receives its address on the Ethereum Blockchain. From that point on, the newly created DAO is completely independent and governed according to its rules.
If the project was created using the Daox Network, the user also receives a unique webpage address on daox.network
In return for funds transferred to the Ethereum address, the DAO transfers its tokens to the sender. Those tokens meet the ERC20 standard and can be immediately transferred to other addresses or be listed on cryptocurrency exchanges.
Project initiators can assign a percentage of the total amount of tokens to the team members, advisors, bounty pool, etc. It is also possible to set up a lock-up or vesting period for the tokens issued during the establishment of a DAO.
The crowdsale continues until the end date of campaign or the hard cap is reached. If the predefined minimum (soft cap) is not reached to the crowdsale end date, the DAO automatically returns all the funds back to its contributors.
The executive team requests withdrawals, and investors decide whether to approve or decline them.
Each such request consists of the amount of funds to be transferred, the voting time frame, the receiving Ethereum address, and a hash code of the inquiry text.
In case the request is approved by more than 50% of all participated in a voting tokens, the funds will be automatically transferred to the specified Ethereum address.
To avoid the reuse of tokens in a single inquiry, the tokens are frozen until the end of the voting. The frozen tokens do not lose their properties, except for the ability to be transferred to other Ethereum addresses.
Every token holder can submit a proposal for activating the refund mode. Such a proposal should be approved by 90% of all the tokens, excluding the number of tokens distributed when the DAO was established.
If the voting is successful, the DAO is switched to the refund mode. The exchange is carried out proportionally to the number of tokens or the amount of contributions.
The DAO also automatically switches to the refund mode if no withdrawals were approved within the period of 3 months.
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