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NULS Enjoys the First-Mover Advantage With SCOs — The Staked Coin Output Rewards Model
SCO is a new model for staking rewards that gives unparalleled flexibility to both projects and token holders, and it’s attracting a lot of institutional attention.
The SCO integrates several features of cryptocurrency market dynamics, mining (via staking), feedback and market resonance, and initial token offerings. Many institutions, including exchanges, staking services, VC’s and incubators have moved in to discover what SCOs can offer up to the industry.
SCO allows for the tokenization of crypto assets and uses public chain tokens, such as NULS, to issue consensus rewards to token holders who stake into SCO nodes. Stakers earn the tokensized assets instead of NULS, and depending on the project, rewards can be distributed as a mix of the two. Projects can easily create their nodes to distribute anywhere from 1-99% of the rewards as project tokens and NULS. If an SCO node for instance, sets its commissioned amount of rewards to 50%, the node will pay out consensus rewards as 50% NULS tokens and 50% project tokens.
For a project to conduct an SCO, it is necessary to establish a NULS node and then distribute the token to trustees via smart contract (Yes, there is a module for this.) Traditional staking only gives reward outputs in the staked token— for instance, staking NULS in a node used to only reward stakers with the NULS token. With the SCO, NULS token holders can stake into nodes whose Staked Coin Output is the project token only, or a mix of both.
Aleph, the first SCO to trial the new model is currently underway and has established six nodes at 99% commission, with a total staked value of nearly 3 million USD. Thus, the Aleph project will receive around 350,000 NULS yearly as ...
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Stories by NULS on Medium