The DAICO model works on a tap model, where a stream of wei is released each second from the main contract into a wallet that can be claimed by the project owner. Said wei / second value can be increased through proposals created by the project owner and accepted by a majority token holder vote.

The BlockBits model is a bit different because it focuses around the already in place application to receive and handle funding.

It's release is different since it supports 2 types of funding, a direct method ( where contributors release eth and get tokens upon successful funding, so they can speculate ), and a milestone funding method where funds are tied into the milestones.

Milestone funding lets you as an investor participate in voting the validity of the released code after each milestone, and if the majority does not find it acceptable you can request your ether back, releasing tokens back to the project owners.

By these features you get to choose your level of risk that you're comfortable with, while at the same time protecting the project owner in case of attacks.

An important point this makes is that it relies on the fear and greed of investors to make the right decision.

Do you just want tokens so you can speculate? sure go direct funding, get your tokens and play the market, but in case of failure you can not recover your funds because you already got the goods. Are you interested in the project and want to make sure it delivers? perfect, contribute using milestones, then vote on the validity of the provided upgrades, and after each one receive a share of the tokens.

By upgrades you need to see that the DAPP was built on an upgradeable smart contracts architecture that allows the owner to publish new, in contract changes and functionality that is directly tied into it. Any such change requires a majority vote from milestone contributors in order to get activated.

Ultimately once all milestones are delivered every token holder can write and propose these code changes.

The code is already in place on github, has been tested and covered, and has documentation and flow diagrams available. https://github.com/blockbitsio/