Dynamic Coin Offering (DYCO)

A dynamic coin offering (DYCO) is a token sale model, introduced around 2019, that gives buyers a limited right to return their tokens and get money back at or near the original sale price. Tokens bought in the sale are typically released gradually over a period of months, and during that time holders can choose either to keep each released portion or to return it for a refund, often in a stablecoin. Returned tokens are burned, reducing supply. The aim is to make a launch fairer than a conventional initial coin offering by limiting buyers' downside if the token trades below the sale price, which also discourages heavy selling after launch. Similar goals inspired the earlier DAICO. The model saw little use, partly because refund guarantees require the project to keep raised funds in reserve. Also see burning tokens and linear vesting.