Hi everyone!
Coming back on Sentinelrv’s answer to Dan’s post, as it reflects the sentiment conveyed through other posts: our goal is not to work against you, but to engage with you not just on PoS security (as we’ve been doing thanks to our technical white paper), but also on PoS currency distribution mechanism.
NeuCoin’s key differentiator is to have a consumer approach from the first day it launches - so that any mainstream consumer can use it, and actually wants to use it. This approach is enabled mainly by our distribution model - which itself is supported by NeuCoin’s implementation of PoS. We are indeed forking Peercoin and are grateful for Sunny King’s and this community’s work - and have never been dismissing it.
Having a consumer approach means the following:
[ul][li]Designing an easy-to-use cryptocurrency[/li]
[li]Developing true utility for NeuCoin, making it more useful than existing payment methods on specific use cases - we chose to focus on micropayments[/li]
[li]Being able to fund user acquisition: marketing, as well as a freemium strategy[/li][/ul]
These three elements - NeuCoin’s ease-of-use, utility development and user acquisition strategy - are entirely financed by its premine. This is why our strategy can only be implemented by creating a new cryptocurrency, not on top of an existing pos coin with a different distribution mechanism.
To quickly go back on the numbers: at inception, there will be 3 billion premined NeuCoins. 2.4 billion NeuCoins will be donated to three non-profit foundations which will use them either to fund core code, utility development or user acquisition.
These 2.4 billion NeuCoins will be distributed the following way over time:
- Some given for free to consumers to try using NeuCoin and for recruiting other users
- Some distributed to companies that make NeuCoin useful: content providers that accept micropayments in NeuCoin, exchanges, payment processors, wallets, etc.
- Some sold to investors, with proceeds used to fund code development, user acquisition, and projects to further develop utility, with a focus on micropayments
The premine held by the Foundations enables: - The funding of NeuCoin’s utility: it will fund the development of applications and micropayment platforms that increase the utility of the currency and thus its value. With our model, we’re able to strongly incentivize the adoption of NeuCoin.
- NeuCoin’s freemium approach. The premine will enable us to give a few NeuCoins for free to mainstream consumers and to implement a freemium approach. If you consider Bitcoin, this is one of our key differentiators: there’s absolutely no way today for a mainstream consumer who knows nothing about bitcoin to try it out and benefit from its advantages in a frictionless fashion. One has to go through so many steps before becoming a bitcoin user, that it is highly unlikely one will ever try it, let alone start using it.
Our plan can only be implemented with a cryptocurrency with a “clean slate”: since our strategy is fully supported by our distribution mechanism, we can’t apply it to a cryptocurrency which has already been created and whose distribution plan is already designed.
Looking forward to getting your feedback on this!