Distribution Of Coin

 
This page contains changes which are not marked for translation.


Distribution of coin

Many alternative cryptocurrencies start with a proof of work phase. Developers reason that miners become engaged with the coin economy and earn the coin through the work of mining. The lesson the https://ionomy.com team has taken from the history of cryptocurrency, however, is that the PoW phase encourages "mining and dumping" which drives down the value of the asset from the start. This supposedly “engaged” user base simply uses mining as a vehicle for quick profit then leaves without contributing ongoing value to the coin or community that uses it.

The ionomy.com business plan, however, is designed to grow the coin value through partial centralization in order to nurture a community whose continuous use of ION gives the coin lasting transactional value. For fuller details on the business model, please see the ionomy.com white paper.

Distribution of IONs takes place both through the ION technology and through the ionomy.com gaming company, according to its business plan. On the technology side, IONs are distributed as a reward for network security and blockchain maintenance performed by wallets and [masternodes] holding IONs. On the business side, https://ionomy.com rewards participants on the https://ionomy.com investment and social platform and rewards gamers on the gaming platforms for their investments, engagement and contributions to the ION community. This joint mode of distribution safeguards the technological infrastructure and populates the ION economy with an active user base. The plan is designed to generate a continuous stream of ION users and to give the coin lasting transactional value. For fuller details on the business model, please see the ionomy.com white paper.

The above content has been copied from the white paper and is subject to change, for the latest version please visit: https://github.com/ionomy/ion/wiki/ION-Technical-Whitepaper