Potential Node Operators Stake $125M in ETH to Take part in NuCypher Encryption Community

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Potential Node Operators Stake $125M in ETH to Take part in NuCypher Encryption Community

Encryption startup NuCypher has completed distributing its community’s native token, NU, to over 2,000 potential node operators who staked greater


Encryption startup NuCypher has completed distributing its community’s native token, NU, to over 2,000 potential node operators who staked greater than $125 million value of ether (ETH) in the course of the month of September. NuCypher’s system will hit Ethereum’s mainnet on Oct. 15.

Primarily marketed as an answer for builders constructing decentralized functions (dapps), NuCypher helps companies encrypt information earlier than they add it to decentralized storage networks, whereas additionally retaining management over who can learn the info as soon as its uploaded (utilizing a sophisticated type of versatile cryptography known as proxy re-encryption). 

On the opposite aspect, contributors who run the community’s nodes earn charges in return for performing cryptographic features and sustaining the community. To take part, nodes have to stake NuCypher’s token, NU. The corporate wanted a method to distribute NU to entities it would moderately anticipate to take part as soon as it goes dwell, and the answer it got here up with was known as “WorkLock.”

Below NuCypher’s WorkLock token distribution program, contributors seeking to run nodes had been required to lock in a minimal of 5 ether (value roughly $2,000 relying on when the ETH was dedicated). It additionally requires the staked ETH keep locked for at least six months, beginning the day the mainnent launches. The onerous collateral requirement levied on aspirant node operators was meant to dissuade customers from claiming NU tokens and never taking part within the community.

Whereas contributors can select to remain or depart with their escrowed ETH after the six months go, in the event that they try to withdraw earlier or act maliciously, they must forfeit the staked ETH. 

“What it means that you can do is stake or escrow ETH into this WorkLock sensible contract. You lock it up for six months from mainnet launch and that grants you this new stake that you should use to function a brand new NuCypher node,” co-founder MacLane Wilkison stated in an interview.

Final October, NuCypher introduced the completion of a  $10.7 million token sale from traders akin to Polychain Capital, Bitmain, CoinFund, Arrington XRP Capital, Notation Capital and others.

Wilkinson based the corporate alongside Michael Egorov, who additionally based the favored automated market maker for stablecoins Curve.



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