NULS, the adaptive blockchain solution for enterprise, has successfully tested a new staking service, staked coin output (SCO), with project Aleph, a cross-blockchain layer-2 network. This staking service applies a new type of reward model in which community members of NULS can stake tokens to receive tokens from other projects building on the NULS platform.
“NULS is providing a critical path for success with this innovation,” said NULS Co-founder Reaper Ran. “SCO can fast track top-tier projects and help spur innovation that the NULS community wants. It’s like sending your kid to college before having them jump into the ‘real world.’ The investor community isn’t risking anything because they are only sacrificing their staked rewards, not their principal. Developers that participate have near-zero overhead, and the NULS network effect means that successful SCO projects are able to approach the market with confidence.”
With this first-of-its-kind system, NULS has paved the way for new blockchain projects to gauge community enthusiasm for concepts, supply tokens for early supporters, and fund development. Furthermore, this SCO model opens doors for projects to have a stronger incubation strategy within the NULS network. Projects can quickly determine the appetite for their proposed solution rather than jumping straight into traditional fundraising, ICOs or IEOs. Then, projects can determine their preparedness for a broader market approach.
Aleph’s Successful Trial:
In just 24 hours, Aleph secured more than 2 million staked NULS tokens. The NULS network had to spin up 4 nodes to accommodate. The first node of 500,000 staked tokens was full within hours of the token launch. Currently, there are over 2.1 million NULS staked into Aleph nodes at a valuation of roughly $1.25 million.
Following the success of Aleph, Hena, a blockchain enabled mobile advertising platform, plans to launch their own SCO.
How Does It Work?
NULS token-holders exercise an option on how they want to receive the rewards they earn for participating in consensus as validation nodes. Every NULS staker must hold 2,000 NULS because staking nodes validate blocks, while the NULS consensus nodes produce the blocks. When a staker delegates their node into a consensus node for an SCO project, such as Aleph, they can earn the alternative (Aleph) token instead of the NULS token as their consensus reward.
How Does NULS Benefit?
This staking system requires participation in securing the network, and serves as an additional utility for the NULS token holder since they can support the ecosystem projects they choose by staking into the SCO node.
Not an ICO/IEO:
An ICO is significantly different because there is an exchange of funds. An SCO never requires token-holders’ funds to leave their possession. They are simply choosing how they want to receive their rewards for their participation in the network. At the same time — the SCO project is earning NULS rewards that can be used for further developmental costs and other expenses. SCO nodes can even choose their commission levels (10-99%), allowing NULS stakers to earn a percentage of NULS alongside the project token.
An SCO is not an ICO or IEO equivalent; it is a way to enhance decentralized finance with a feature that allows a project to earn support for development, marketing, and other costs while contributing to the network consensus. The NULS protocol is, so far, the only protocol that can offer this functionality. Projects can follow an SCO with traditional ICO/IEO offerings provided they conform to regulatory guidelines.
Building a DEX to Tie It All Together:
In the near term, Bibox plans to build a DEX on NULS to provide the opportunity for projects to secure quick listing following a successful SCO. This new functionality offers the first ever concept-to-offering solution natively on a blockchain platform. And with cross-chain on the NULS roadmap, projects will have a chance to expand into the broader blockchain ecosystem.
To further support SCO projects, NULS has also put together SCO Lab, a coalition of multiple public chains, incubators, mining pools, exchanges, media and other professional institutions/organizations. The SCO Lab will help in the development and promotion of projects, providing yet another path for project success. Currently, members include:
- NULS (Blockchain Infrastructure)
- Staking² (Platform)
- BitSG (Exchange)
- Xionglin Capital (Capital Fund)
- BlockCapital (Incubation)
- HashQuark (Platform)
- BISS (Incubation & Exchange)
SCO Lab will commence with an SCO 11 program in which participants will select 11 quality projects to help expedite development.
NULS is an open-source, enterprise-grade, adaptive blockchain platform that offers fast-track business solutions for developers. Featuring microservices, smart contracts, cross-chain interoperability, and instant chain-building, NULS sets a new industry standard in streamlining blockchain adoption.
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