This article was first published on Stories by NULS on Medium
With Proof of Credit Mining (POCM), any person or business can jump-start a project and issue tokens. POCM is one of NULS’ most innovative products.
Companies can promote their tokens within a fast-growing community. Participants stake their NULS to the project they’ve selected, and in exchange, they receive project tokens.
The project owner receives the NULS rewards generated from the participant’s staking. This enables blockchain projects to obtain funding from communities and promote their token.
POCM is a win-win for both projects and token holders, giving both sides unmatched flexibility. POCM is a lot like crowdfunding. NULS token holders select from approved blockchain projects hosted by the NULS ecosystem.
You can check out NULS POCM projects for yourself: NULS POCM Projects.
Exchanging NULS Rewards for Project Tokens
The foundation of POCM is the Proof of Credit (POC) consensus mechanism. POC is different than Bitcoin’s Proof of Work (POW). With POC, a network of trusted nodes validates NULS transactions.
These nodes are consensus nodes. The staked NULS tokens in each of these nodes have a say in its trustworthiness, contributing to its weight. Currently, over 80 nodes are maintaining the NULS blockchain.
In exchange for their effort, nodes receive NULS tokens as rewards. The owners of NULS staked to each node get a portion of the node’s rewards.
When a NULS owner (project participant) stakes in a POCM project, his/her stake is translated to a stake in a consensus node. The project owner receives NULS rewards for the stake, and the project participant receives project tokens.
This is a win for the startup using the POCM platform....
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Stories by NULS on Medium