Entertainment oriented cryptocurrency Neucoin plans to eliminate 50% of coin supply and complete consumer distribution within three years
The Neucoin foundations have determined that mass user adoption can be reached faster and with fewer tokens distributed than expected.
To maximize Neucoin’s value, the foundations’ holdings will be cut from 3.2 billion to 1 billion in the next several weeks by destroying 2.2 billion coins, decreasing the entire coin supply by 50%. According to the foundation, a revised mining participation forecast puts expected total supply in 10 years at 10 billion rather than 100 billion as previously projected.
The foundation claims that, three months after launch of its first consumer apps, Neucoin has reached over 275,000 users and is growing at over 8,000 users a day, on track to acquire 2 million users by year-end 2016.
The Neucoin team believes that “the clearest path to mass adoption is to partner with successful online services who would like to reward their users with Neucoins for utilizing their service – like a loyalty point program.” Neucoin has implemented this type of program with free music site Jango, which has seven million users.
In February, the Neucoin Foundation switched the cryptocurrency to pure proof-of-stake (PoS) a few months sooner than originally planned.
Neucoin is based on one of the oldest cryptocurrencies, Peercoin, which itself derived from Bitcoin but replaced Bitcoin’s PoW algorithm with a PoS consensus mechanism. This effectively replaced the operating costs of Bitcoin miners, namely electricity and hardware costs, with the capital costs of holding the currency.