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What is the general revenue model for ICO projects apart from token sale? I read somewhere once tokens are sold, founders are left with limited number of tokens with them let's say 10 percent. Blockchain based projects as i understand correctly are not which can be sold later , so how the development of project is maintained in long term, let's say 10 years?If the project really gets popular and require some bug fixes in future or upgradation is required , how the cost will be handled ?

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What is the general revenue model for ICO projects apart from token sale?

Typically, the owners of the ICO contract accept ether, which they then use to fund various aspects of the project. Aside from this token sale, revenue generation varies greatly from project to project. For example, a gambling dApp could generate revenue by collecting a commission from every placed wager, a DNA collection dApp could charge companies for access to genetic data, and so on.

I read somewhere once tokens are sold, founders are left with limited number of tokens with them let's say 10 percent.

Yes, it is typical for founders to allocate a certain percentage of the total token supply for ICO. This of course depends on the type of crowdsale and token used for the ICO contract (i.e. can the founders generate/mint new tokens after ICO).

Blockchain based projects as i understand correctly are not which can be sold later , so how the development of project is maintained in long term, let's say 10 years?

There are a few ways an ethereum-based blockchain project can generate revenue over a 10 year period. One way, as previously mentioned, would be to have commission/payment based functionality built into the dApp. Another way (albeit generally frowned upon) would be to have multiple crowdsales to fund the project over the 10 year period. However, I can't imagine this option being be very successful.

If the project really gets popular and require some bug fixes in future or upgradation is required , how the cost will be handled ?

Ideally, the project will have some type of functionality which users will find valuable, and will be willing to pay for. These users could be typical end-users as in the gambling example mentioned previously, or they could be larger companies as in the DNA example.

When examining an ICO, ask yourself if the project truly needs a token. Is the token an integral part of the application, or could they just navigate away from it and use ether instead?

  • thank you for the detailed information.. one point i was not sure how the payment/commission functionality would work with blockchain. will look into that. – vineet pant Apr 5 '18 at 1:58

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