Ethereum developer and creator of the ERC-20 standard Fabian Vogelsteller during a speech at the Devcon4 conference in Prague proposed the concept of a reversible ICO (RICO), during which a special smart contract will allow investors to return the invested funds at any stage of project development by returning tokens. This is reported by COindesk.
You are able to withdraw the funds you committed at any point of time and you do this by simply sending back your tokens. It brings the balance back between the community and the project and I think this is really important.
As soon as the Ethereum coins come back to the investor, other users will have the opportunity to purchase tokens. Vogelsteller stressed that all this can provoke a fluctuation of quotations, therefore, projects will need to attract basic funding from private investors outside the ICO.
He added that he felt responsible for the ICO boom, because he had created the standard, and he intends to propose a better model. In his opinion, RICO can significantly reduce the number of scams and encourage project creators to keep their promises.
Earlier, Vogelsteller proposed to use the ERC-725 rulebook for the standardization of digital identification technology.