NeuCoin, known as the “2nd Generation Peercoin Fork,” says it has reached over 275,000 users three months after launching its consumer apps and is acquiring more than 8,000 users a day, on track to acquire 2 million users by year-end 2016.
The company also announced it will eliminate half of its coin supply and complete consumer distribution in three years.
NeuCoin believes mass user adoption can be achieved faster and with fewer tokens distributed than expected. In order to maximize its value, the NeuCoin foundations will trim their holdings from 3.2 billion to 1 billion in the next several weeks by destroying 2.2 billion coins. This will cut the entire coin supply in half.
A new mining participation forecast pegs the total supply in 10 years at 10 billion rather than 100 billion as previously projected.
NeuCoin’s founding principle was to distribute the cryptocurrency to all participants in proportion to the utility and value they add. In the past year, the foundations have distributed tokens in the following ways:
• Through referral bonuses, surveys, feedback programs and questionnaires
• From sale-restricted NeuCoins to the founding team, strategic partners, service providers and angel investors
• From a presale to the crypto community in exchange for bitcoin
• From proof-of-stake and proof-of-work mining rewards
• Through the Growth Accounts at MyNeuCoin and the GetNeuCoin tutorial-game
• Through Solitaire Racer, the NeuCoin-integrated Facebook game
• From a tipping and user reward program in conjunction with Jango, a free music site with 7 million users monthly
NeuCoin notes it has learned the following lessons from this experience in distributing cryptocurrency.
1. Consumer fraud is a big challenge. To prevent fraud, user rewards have to be small. Even then, the rewards should require a significant amount of time to earn.
2. The best path to mass adoption is to team with successful online services who want to reward users with NeuCoins for utilizing their service, similar to a loyalty point program. NeuCoin has deployed this kind of program with Jango and is presently optimizing it in preparing to roll it out with other big partners.
3. Critical crypto ecosystem partners like payment processors, exchanges,, crypto-gambling services, etc. have to see a big NeuCoin user base, but they don’t need to be provided large NeuCoin bounties themselves.
In the past six months, the crypto community has raised two main critiques of NeuCoin’s design that the team and foundations regard as valid. These are:
1. The total coin supply and future growth are too high
2. The foundations own too much of the coin supply for too long
Considering all of these points, the foundations recently made several strategic decisions that are intended to increase the value of the cryptocurrency as well as accelerate its effective decentralization:
• First and foremost, considering that fewer coins have to be distributed per person to consumers, and that ecosystem partners don’t need big rewards, the foundations will destroy 70% of their NeuCoin holdings. This pares the current total coin supply by roughly half to 2 billion and reduces the projected coin supply in a decade to 10 billion due to lower projected proof-of-stake mining participation from consumers relative to the foundation’s 100% mining rate.
• Second, user acquisition will accelerate. Considering the smaller number of foundation coins and the efficiency of NeuCoin’s partner distribution program, the foundation will try to distribute its holdings to consumers in three years instead of 10.
• Third, considering the improved focus on distributing foundation holdings almost completely to consumers, the three NeuCoin foundations will merge into one – the NeuCoin Growth Foundation.
• Finally, to offset its increased ownership portion of the total coin supply, NeuCoin’s founders will forfeit the 200 million of NeuCoins they were to receive in the second and third year following the launch. Sales restrictions will be extended from five to 10 years for all restricted coins held by founders and angel, team, and seed investors.
NeuCoin also reports progress on its path to widespread consumer adoption.
Its Solitaire Racer multiplayer casual game on Facebook has acquired more than 80,000 NeuCoin users. NeuCoin has made several improvements to the game. When the improvements are completed in the next two months, marketing will accelerate. SongQuest, NeuCoin’s second Facebook game, is in alpha testing and is scheduled for public release in May.
On Jango Internet Radio, the tipping platform, more than 30,000 listeners have tipped the cryptocurrency to more than 25,000 artists.
More importantly, Jango has been rewarding users with one to two NEU daily for returning to Jango and listening to music. Once the user accumulates 50 NEU, he/she can transfer them to a MyNeuCoin account or elsewhere. In just over three weeks, NeuCoin has gained more than 150,000 additional users through this program.
The growth demonstrates that Jango will be able to deliver close to 2 million users to NeuCoin in 2016. More importantly, this will provide the model for other large-scale NeuCoin distribution partnerships.
In upcoming months, NeuCoin will optimize the program with Jango to develop a case study showing how a NeuCoin distribution partnership can build signup and retention rates for other high-profile consumer services with big existing user bases.
Image from NeuCoin.
Last modified: July 13, 2020 3:16 AM UTC