What is the point of NeuCoin? Will it make blockchains profitable? If you have something innovative to add to cryptocurrency then why not propose a paid delegate for yourself and add it into BitShares?
The point of NeuCoin is our formula for growth and consumer adoption.
We think cryptocurrency is the greatest invention since the Internet itself, with enormous potential, and we obviously stand on the shoulders of giants here, but for all its buzz and media attention, crypto has gone virtually nowhere in terms of mainstream adoption in the six long years since the birth of Bitcoin. From a consumer perspective, it’s niche and techy and inaccessible to regular folks and honestly doesn’t yet have any killer apps that regular consumers care about. It’s a niche phenomenon that’s smaller than even the most moderately successful app or website.
We believe that PoW mining/coin distribution has been the main showstopper. And that PoS has the power to change this. Because the true genius of PoS is that it allows for the use of coin distribution as a strategic tool for growth and adoption.
And that’s what NeuCoin is about – harnessing the power of secure PoS technology to facilitate growth and adoption.
Here’s how I would describe our main innovations:
1. Strategically distributed. If you look at the NeuCoin growth-driven distribution model, it incentivizes early adopters to help increase the utility and value of the coin. Instead of just giving coins to miners, who most of the time sell them right away, NeuCoin will be strategically distributed to reward and incentivize all participants who help increase its utility and value: consumers, early investors, exchanges, payment processors, merchants that accept micropayments in NeuCoin – and early adopters like the Bitshares community. In addition, the NeuCoin foundations will use the proceeds from coin sales to directly fund projects that increase the utility (micropayment platforms, super easy online wallet, etc) and consumer reach (freemium coins to consumers and referrers) of NeuCoin, which in turn increases the value of NeuCoin.
2. Rewarding early adopters. Tied to the above is the fact that people who get in early on NeuCoin - who help create the first core of users and holders - will be highly rewarded for adding this value. NeuCoin’s economic model uses very high PoS awards, starting at 100% per year in year one, 80% in year two and gradually declining to 6% by year ten, meaning that coin holdings will multiply by up to 50X over 10 years with non-stop PoS mining.
3. Easy and consumer-friendly. For consumers to want a cryptocurrency, it has to be easy and fun and well-marketed. Think Candy Crush or Viber. Mainstream. But saying “easy” is easy, the trick is that it really also has to offer mainstream consumers something new to do that they can’t do better with traditional payment methods. Something fun and sticky that will make them come back for more. That’s why NeuCoin is developing platforms for micropayments – which is a new behavior that hasn’t been possible before - and we already have major premium content partners in place.
4. Freemium strategy. The “freemium” strategy, so successfully used by our investors and advisors at Candy Crush, Spotify, etc, is key to consumer adoption. Having a distribution structure that allows you to give out a few for free to consumers to try out the micropayment platforms. With zero friction. After they have a good experience, they might come back for more.
5. Transparency and governance.
For all this to work, governance is key. Trust and transparency is everything. The crypto world is held back by the shadier parts of its history. This is hindering mainstream acceptance and adoption. That’s why we have set up a structure where NeuCoin will be open, accountable and ultimately controlled by coin holders. NeuCoin’s core code development, user growth programs, and projects to increase utility will be supported by three non-profit foundations based in Isle of Man: the Code, Growth and Utility foundations. All foundations are ultimately controlled by NeuCoin holders (1 NeuCoin = 1 vote), who have the power to hire, fire and set compensation for the foundations’ Council Members, and have a right of approval on annual budgets, spending priorities, etc.
6. An experienced team and high caliber investors and advisors. There’s lot to do and you need resources and dedicated, full time people with good rolodexes to get it done. NeuCoin’s founding team has built multiple companies with millions of users in the music, gaming and shopping sectors - hundreds of millions of users in total. Our strategic advisors include the Head of Growth at Spotify, the co-founder and Chief Architect of King (Candy Crush Saga), the creator of Dogecoin, the core developer of Peercoin and a board member of the Bitcoin Foundation. We also have $2.25 million of initial funding from founders and strategic angels, including the co-founder of King (Candy Crush Saga), Head of Growth at Facebook, SVP of Business at Uber, President of Hotwire, Producers of American Idol and X-factor and dozens more high caliber investors who can help NeuCoin forge strategic partnerships and drive consumer adoption.
This is obviously just a summary, and probably already bored this forum to death, but if you’re interested we describe all this in a lot MORE detail in the “Strategic Plan” on neucoin.org. It’s a complex formula with many components, but it’s all about incentivizing growth and adoption so that crypto can break out and free the world.