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Nuls introduces new staking model SCO

By Rafał - 2019-08-20

In the modern cryptocurrency market, innovation is very often the strong point of a company or an entity to stand out from the rest of the competitors. SCO is a new model for staking rewards that gives unparalleled flexibility for both projects and token holders and introduces a new profitable POS consensus to reward NULS partners through new projects development.

SCO Introduction

In short, SCO integrates several features of cryptocurrency market dynamics, mining (via staking), feedback and market resonance, and initial token offerings. 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 tokenized assets instead of NULS, and depending on the project, rewards can be distributed as a mix of the two or only one of these.
Nuls SCO
source: https://medium.com/@nuls
Projects can easily create their nodes to distribute anywhere from 1-99% of the rewards as project tokens and NULS. In this way, if an SCO node sets its commissioned amount of rewards to 50%, the node will pay out consensus rewards as 50% NULS tokens and 50% project tokens directly. Projects wishing to conduct an SCO must first establish a NULS node and then distribute the token to trustees via smart contract through an integrated module. Traditional staking only gives reward outputs in the staked token. With the new SCO method, NULS token holders can stake into nodes that are either oriented on NULS or on a specific token as well.
The first SCO to trial the SCO model is Aleph, which has already set six nodes at 99% commission has now a total staked value of nearly 3 million USD. The Aleph project , choosing this path , will receive around 350,000 NULS yearly as consensus rewards. A deposit of 10,000 NULS into an Aleph SCO node will rewards roughly 350 Aleph each day, over 10,000 Aleph per month with the current market status.
Recently, NULS co-founder Reaper Ran pointed out that NULS is the best option for SCOs:
  • The threshold to join consensus as a NULS mainnet node is relatively low with the liberty to join or exit the program as users wish and at anytime.
  • A project through SCO can participate in the network with a consensus node to obtain tokens as a source of revenue and distribute assets rationally to the whole community.
  • NULS staking doesn’t require users to lock their assets. When token holders do not want to participate in an SCO project anymore, they can choose to withdraw at any time or participate in another similar SCO project or any other NULS node.

Limited Compatibility

The co-founder has also pointed out that not all PoS or DPoS public chains can support SCOs because it requires specific parameters from a consensus mechanism. This cannot be supported by public chains if they have set up a maximum number of their block-producing nodes.
New project developers that establish SCO nodes need to distribute their token assets steadily and consistently to their stakers. If a project can’t guarantee to produce blocks all the time, they can’t acquire stable consensus rewards and therefore cannot distribute assets on an ongoing and consistent basis.
With SCO NULS provides flexibility by allowing node operators to set the commission rate paid to them from the node , with no extra limitations on the amount of nodes that can participate in consensus, no lock-ups for stakers, and rewards that are distributed by the minute. This solution offers new way to introduce POS in the crypto sphere.
Learn more about NULS: https://nuls.io/