Hay Sammy,

The coins are locked in escrow for various periods of time which both funds and incentives the ongoing development of the coin. It aligns the core teams goals with the community in that they want a successful coin with a large market cap.

This is somewhat in contrast to ICO's where they get your money first and then you have to hope they follow through with their promises.

Personally, if a coin has to be funded ( as opposed to pure community / volunteer project ) having coins in a fund for dev is my preferred method.


I have and still am involved in pure community coins with no funding and development is excruciatingly slow. Which leads me to believe some form of funding helps progress along and you nor i are getting any younger. So the quicker the better imho.