Reversible ICO (rICO)
Also known as: rICO, Token Sale with Refund, Investor-Friendly ICO
A fundraising model that allows investors to withdraw unallocated funds during a token sale for added protection.
A Reversible ICO (rICO) is a fundraising mechanism designed to give investors more control and reduce risk in token sales. Proposed by Fabian Vogelsteller (co-author of ERC-20), it allows participants to commit ETH over time and withdraw unallocated funds if they lose confidence in the project. rICOs use smart contracts to stream token allocation linearly, with investors having the option to exit at any point before full vesting. This aligns incentives between teams and investors, reduces the risk of scams or project failure, and supports fairer capital allocation.