EUNO Coin’s ACID Protocol — Adoption and Convergence Incentivized Distribution
For any decentralized cryptocurrency that does not begin with an initial coin offering, miners, stakers, and masternode operators are the capital owners of the ecosystem. They own the machinery and capital that verifies transactions, and in return, receive newly minted coins for their energy costs and capital investments. Short of mass adoption prospects, their incentive is to sell those coins in order to cover their costs and generate profit. Users at the other end of the equation obtain coins for their equivalent value in fiat or other cryptocurrencies with an incentive to sell at higher prices in the future, and rarely — to date — with an incentive to use in everyday transactions.
Leaving aside the potential benefits and use-case of any cryptocurrency, this system which describes the current state of the space presents a problem as it requires new individuals to continue buying offered coins to uphold the value of the currency. Such a scenario is unsustainable and prompts arbitrary speculative behavior. In turn, it results in high price volatility, influences willingness for adoption and in the longer run results in the currency’s failure. In a sense, the cryptocurrency space as it is today can be likened to that of a closed futuristic economy in which intelligent machinery undertakes all needed labor and rewards capital owners, but ignores the remainder of the population whom with limited work opportunities are incapable of supporting the demand side of the equation. In such a world, the logical solution for sustainability would be the setup of a global basic income that would put the wheels of exchange into motion and create a reasonable demand/supply dynamic and contain price volatility. After all, consumers are just as much needed as producers for the system to work, and the system can only work if everyone who makes it work is rightfully rewarded.
Moving from this simplified yet potent analogy, EUNO recognizes that limited adoption of cryptocurrencies places the space in a viscous cycle due to misaligned incentives that discourage use and encourage irrational speculation. In order to break from this cycle, EUNO aims to create a real production-consumption dynamic by providing reward incentives for coin users as a share of the coin’s emission rate, balanced against the incentives provided to miners and network supporters, and structured to limit concentration of wealth and to curb entry risks.
To do so, EUNO introduces the ACID protocol — Adoption and Convergence Incentivized Distribution protocol — which uses a decentralized and impartial mechanism to allocate rewards to users of EUNO near field communication (NFC) point of sale payment system, stressing the element of convergence through a reward scale that gives smaller users a larger percentage return to promote wider distribution and restrict potential system manipulation. In simple terms, the ACID protocol would balance producer and consumer rewards to uphold the value for both and limit speculation volatility, keeping in mind that without adoption, a currency carries no intrinsic value, without fair distribution, value is determined by irrational speculation, and without relative price stability, use-case adoption is unlikely.
EUNO — Acid Protocol
Details and technical analysis on EUNO’s ACID Protocol, Near Frequency Communication Point of Sale payment system and Governance Structure, can be found in the EUNO White Paper.
writer credit: Banky Moon