Re: ICO obligations

But after developers get this ICO money, it is down to them to use that money, how to use and allocate it, how to control the development process etc. I don't think there are any procedure to punish them.

An idea popped into my mind.

What if ICO coin buyers vote on each release of the budget. They only get to vote up to the value of the tokens they own. They can vote any fraction of their tokens on any budget release. Once they've voted all their tokens, they can't vote any more.

The approved releases are taken from the pool of BTC. Any of the pool not released after a certain period of time, is returned back to all ICO investors proportionally.

What do you think? See any flaws in it?

One flaw is that it means some ICO owners can hold the other owners hostage, by refusing to fully fund what the developer thought had been raised already. But I am not sure that is really a flaw. It means the devs have an ongoing incentive to perform. I am very sleepy so I might have a major flaw in this idea.

@iamnotback,
I believe you would most likely end up with Continuous token models as discussed by Simon de la Rouviere
https://media.consensys.net/exploring-continuous-token-models-towards-a-million-networks-of-value-fff153175776#.ev642unp1

Not exactly the same. I am proposing a preset beneficiary that can't change, so the voters can't pay themselves unless they are also the beneficiary.

And I am talking not about minting new tokens as a process of mining, rather instead for these tokens to be bought at an ICO. Then the owners of the tokens vote. But they can vote independently with their share of the pool.

So for example, if an ICO raised 100 BTC from 100 contributors. Then for example 10 owners of tokens might decide to vote to release 10 BTC to the developer. They voted independently of the other 90. If the other 90 refuse to ever release any tokens and the deadline lapses, then all token holders receive a 90% refund and lose 90% of their tokens. Note that each owner of tokens can vote his token share at any time at his discretion.