New ICO? NULS Partners with Aleph to Raise $1.25 Million via a Staked Coin Output (SCO) Process
Staking is picking up in most projects as a way to secure the blockchain rather than the legacy proof of work mechanism. Well, NULS, one of the lesser known projects, is introducing a new way to get cryptocurrency projects running with the Staked Coin Output (SCO).
A PR announcement from NULS confirmed the team has partnered with Aleph, a cross-blockchain layer-2 network, to test the SCO method. The staked coin output allows investors to stake their NULS tokens and will subsequently receive tokens from projects building on the NULS blockchain. Most importantly, the funds are not sent directly to the wallets of the developers – as ICO processes do.
Speaking on the latest development, the co-founder of NULS, Reaper Ran praised the move as “a critical path for success” for his project. SCOs are expected to spur development across the cryptocurrency community and further grow the number of projects launching on NULS.
SCO switches from traditional fundraising capabilities – ICO, IEO and STOs – to allow users to put their staked rewards as collateral. Reaper assured investors of the benefits of the SCO process saying,
“The investor community isn’t risking anything because they are only sacrificing their staked rewards, not their principal.”
The developers of projects participating in the SCO process will also have a platform to broadcast successful projects, test their market depth and build better projects without public fundraising.
NULS/Aleph successfully test SCO on the platform
Aleph and NULS blockchain completed successfully the testing of the SCO method using 4 Aleph nodes to stake more than two million NULS tokens in less than 24 hours. The total amount of the staked coins rounds to $1.25 million USD currently.
To receive staking rewards, users are expected to stake at least 2000 NULS (~$820 USD) to validate the network.
Following the successful launch of the Aleph project on the platform, the blockchain is inviting more cryptocurrency projects to test the SCO process. Hena, a mobile advertising blockchain is poised to become the second crypto project to launch using the SCO process.