Cryptocurrency

NeuCoin Raises $2.25 Mn to Bring a New Alternative Digital Currency

The NeuCoin Project has announced its new digital currency that aims to achieve mainstream adoption by being free to try, easy to use, and by enabling micropayments that are not viable with traditional currencies. NeuCoin has closed $2.25 million of initial funding. Strategic investors include executive from Facebook, Uber, Hotwire, Spotify. Using an innovative proof-of-stake (PoS) design and economic model, NeuCoin is the first digital currency that will be strategically distributed to all participants who help increase its utility, growth and value.

NeuCoin will roll out pilot micropayment platforms with three major content partners: MondoMedia, Jango and RadioAirplay. With freemium distribution, consumers receive free NeuCoins to complete their first micro-transactions, so they can experience the service with the least friction possible. This is a huge advantage over micropayments using other digital currencies, which typically require the initial purchase of tokens with fiat money through bank accounts or exchanges.

NeuCoin's design maximizes security, minimizes transaction fees, and ensures its long-term decentralization. Three billion NeuCoins will be pre-mined and allocated to the foundations (83.3 percent), the founding team (6.7 percent), and the initial investors (10 percent). Over 10 years, the supply of NeuCoins will grow to approximately 100 billion, primarily from PoS awards that steadily decline from 100 percent to 6 percent per year. After 10 years, the supply of coins will grow by 2 percent to 4 percent per year, based on the number of coins staked by miners. These high PoS rates reward early NeuCoin adopters and address a critical security issue of previous PoS coins by incentivizing PoS miners to stake many coins and operate many nodes.

Dan Kaufman, one of NeuCoin's co-founders, said in an official press release: "Strategic currency distribution is a huge advantage over Bitcoin and other Proof-of-Work coins. Instead of handing all the currency to miners, where its value is essentially spent on computing and electricity costs, NeuCoin channels the value of the currency into user growth and projects that make the currency useful for regular consumers."

Kate

Kate is a staff writer at LetsTalkPayments.com., , She likes to write about mobile payments and mobile commerce.

Apply to Become a Contributor