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RE: Koinos Is Getting Closer To Mainnet Launch

in LeoFinance2 years ago

Here's why #koinos will have greater decentralization from launch than most or all other chains (aside from maybe BTC) with launch: the initial distribution and proof of burn. There wasn't a pre-mine, ICO, or development fund. Just pure mining open to everyone at the same time. Since this initial distribution was done as an erc-20 on Ethereum, people also sold tokens they mined on uniswap over the last two years. Because of this, the initial distribution isn't lopsided and starts out in many different hands. Because it requires burning Koin to mine new Koin, everything is pre-slashed (unlike PoS) and the network can't be taken over by someone who simply holds the most stake (also unlike PoS). They would have to burn their stake and actually produce blocks for a very long time before getting their stake back.

It's most similar to PoW on bitcoin except miners are paying for mining up front in a virtual way instead of buying mining equipment and using electricity.

That's why they are using the term "truly decentralized".