It is true that ICOs are no longer unanimous. A lot has changed since the boom of the so-called Initial Coin Offerings between 2017 and 2018, including the emergence of new (and more reliable) mechanisms aimed at the benefit of both the investor, who seeks security when allocating their resources, and crypto projects, which need funds to enable their own strategies.
What the market currently offers
Seeking new alternatives to ICOs, some projects sought to develop other concepts to draw the attention of investors and partners.
IDO, for example, is one of the alternatives found that quickly gained their space in the crypto sphere. They are carried out on-chain and intuitively using your own web3 wallet. However, there are still risks similar to those of ICOs because we are facing the exchange of one asset for another directly. In this case, by the way, the ease of the buyer being deceived and losing their funds is enormous.
With that in mind, the market continually overlaps to find solutions that are safer and more viable, one of them being PolkaDot, through its auctions.
Within this framework, PolkaDot provides 100 slots, or spaces, for new projects to use. So, the holders with the highest amount of DOT in stake get greater voting power, being able to choose the projects that will actually occupy the released slots. The process is simple — the highest bid wins and can occupy the designated space for up to two years.
The model presented by PolkaDot is undoubtedly functional. In addition, it is worth getting to know him a little better, even to know more about what is currently available and to see if our mechanisms are a better or more appealing alternative.
However, there is a factor that we consider fundamental and where we believe that there is an imperial difference between the auctions and the POCM of the NULS — which is the need for the participant in the Auctions to have to lock their DOT for two years, while in the POCM the The user is guided by freedom of choice, having the right to participate and leave whenever he wants.
That said, our focus is on discussing the advantages of the POCM system.
POCM: How Magic Happens
The NULS SCO platform allows projects to use the smart contract-based concept of POCM ( Proof of Credit Mining ) to create an SCO ( Staked Coin Output ) node. Thus, NULS holders can stake the projects that interest them the most and will still receive the newly created tokens from the project itself, instead of the usual NULS rewards.
The project’s SCO node continually earns NULS from staking rewards that would otherwise be given to NULS holders, while projects can use these coins to streamline their own processes and help fund everything needed. This entire process is planned by the project itself with the help of the NULS team, if necessary.
Benefit only for new projects?
Definitely not. POCM provides the same functionalities mentioned above to be used in any public chain, as well as in assets of any blockchain ecosystem.
In this way, both new (recently launched) projects and existing teams can benefit from this structure designed by NULS.
It is worth remembering that NULS is constantly moving towards the integration of services from different blockchain networks. With that, we can certainly admit that more cross-chain integrations are on the way!
Unlike IEOs, ICOs and IDOs, staking users never risk their core capital and their NULS never leave their wallets. In addition, it is possible to earn tokens from projects while the device is turned off!
Other than that, as already mentioned, POCM is a universal SCO platform and can be used to issue and distribute tokens and assets from any public chain on any blockchain.
So, what are you waiting for? Get into this idea right now!