nuco.cloud Locked 12.5 Million NCDT In Company Reserves to External BaFin-Licensed Custodian
Gersthofen, Germany, February 28th, 2024, Chainwire
In the fast-paced crypto space, there’s a strategic mechanism that is becoming increasingly popular: token lockup strategies. These strategies have emerged for managing the supply and stability of digital assets.
A great example of this is how nuco.cloud, a decentralized network of cloud computing aggregators, has structured its NCDT tokenomics for its long-term sustainability and ecosystem development. Before zooming in on nuco.cloud, let’s find out what exactly a token lockup strategy is.
The Essence of Token Lockup Strategy
A token lockup strategy involves the temporary restriction of a certain quantity of a crypto token from being sold or transferred. This strategy is commonly employed by blockchain projects to control the circulation of tokens, particularly in the initial stages after a token sale or ICO (Initial Coin Offering).
The implementation of a token lockup typically uses smart contracts to restrict the movement of a set amount of tokens for a specified period, ensuring that they cannot be transferred or sold until certain conditions are met.
There are various structures for token lockups, including fixed period lockup, staged release, vesting schedule, activity-based lockup, and back-end lockup.
The token lockup strategy serves several purposes, such as preventing market flooding by limiting immediate token availability, thus stabilizing the token’s price.
It aligns with the long-term interests of the project’s stakeholders, as their financial benefits are tied to the project’s performance over time. Additionally, it builds investor confidence by demonstrating the team’s commitment to the project’s future and its gradual and sustainable growth.
nuco.cloud’s Token Lockup Strategy
nuco.cloud, as a network of cloud computing aggregators, stands at the forefront of decentralized cloud computing revolution. Within its decentralized architecture, nuco.cloud connects established data centres worldwide and taps their idle power to fulfill the huge demands for computing power in various IT infrastructures, especially Artificial Intelligence (AI).
NCDT is the platform’s native token, which is used to pay those who contribute their unused computing power to the decentralized network of nuco.cloud GO.
Here’s how it works: at nuco.cloud GO, users can sell their regular computer’s unused power and get paid for their contribution in NCDT.
When customers purchase computing power from nuco.cloud GO using NCDT, a structured distribution takes place: 70% of the payment is awarded to the miner, and the remaining 30% is reinvested back into nuco.cloud. This smart allocation not only rewards the miners for their important role but also fosters a balanced and sustainable ecosystem.
The NCDT Tokenomics
nuco.cloud’s token lockup strategy refers to the company reserve consisting of 12.5 million NCDT tokens, which is 25% of the total supply of 50 million tokens, and is locked in a vesting contract from a German Token Custodian with a BaFin Custodian License.
The circulating supply is 25 million NCDT, which is 50% of the total, and the remaining 12.5 million NCDT (25%) are allocated for staking pool rewards, marketing, product development, and ecosystem development.
Total Supply: 50 million NCDT
Circulating Supply: 25 million NCDT
Company Reserve (locked): 12.5 million NCDT
Marketing / Staking Rewards / Airdrops: 12.5 million NCDT
The tokens can only be purchased through exchanges such as the MEXC exchange and not directly from nuco.cloud. This ensures a fair and competitive market price as demand and supply dynamics play out on the exchange.
Advantages of nuco.cloud’s Token Lockup Strategy
As nuco.cloud’s token lockup strategy is executed with the partnership of a BaFin-Licensed Custodian, it ensures regulatory compliance and further reinforces the security, stability, and longevity of the NCDT token.
Its benefits for ecosystem development are multifaceted. The strategy ensures price stability by preventing the overselling of large amounts of tokens and shows a commitment from the developers to the project’s long-term success.
This, in turn, builds increased trust among investors and protects against “pump and dump” schemes. Furthermore, a portion of the payments made in NCDT for computing power on the nuco.cloud platform is reinvested back into the ecosystem, fostering its balance and sustainability