Why Pre-Mining Tokens Isn’t Necessarily a Bad Thing
The general agreement within cryptocurrency communities around the world is that pre-mined tokens are bad. They are created by greedy developers and who fill their pockets, so they say. What did pre-mined tokens do to gain this reputation? It seems like people are not fond of these tokens for several reasons. However, we want to ask the question, “Are pre-mined cryptocurrencies really that bad?” First, why don’t we find out what pre-mined tokens are?
What are Pre-mined Cryptocurrencies
What are Pre-mined Cryptocurrencies
Simply put, pre-mined tokens are tokens that are mined before they are made publicly available. This is where people seem to have a problem. Advocates of decentralization claim pre-mining tokens distorts token distribution and is therefore bad. However, we have to understand that pre-mined tokens do good for our society. There is a reason why some projects choose to pre-mine their cryptocurrencies. And it isn’t for personal gain.
Why Pre-mining is Sometimes Necessary
While those against pre-mining argue that pre-mining leads to uneven token distribution, quite the opposite is observed in some cases. Let’s take for example Auroracoin. Auroracoin was launched in early 2014 as an alternative to the krona, the official currency of Iceland. The creators of Auroracoin did something that was unprecedented at the time. They announced that they would distribute half of all the tokens to the citizens of Iceland. All 330,000 people. Making use of the national ID system, the tokens were given to the people. Everyone received the exact same amount, 31.8 Auroracoins. This seems like pretty fair distribution to me.
Another example of a pre-mined cryptocurrency is Nano, formerly known as Raiblocks. Raiblocks was 100% pre-mined, but the way it was distributed was unique as well. It also allowed for fair distribution, even for people without mining devices. Anyone who had a computer was able to solve CAPTCHA problems to receive free Raiblocks. Both people in developed countries and people in third-world countries could “mine” this cryptocurrency by completing an uncomplicated task.
CyClean’s Pre-mine is Great for These Reasons
Yes, like Auroracoin and Raiblocks, CyClean tokens were pre-mined. Consequently, the world has become a better place. There are two reasons why I say this.
1. CyClean’s pre-mine saves a ton of electricity that would otherwise have been consumed
If CyClean weren’t pre-mined, it probably would have adopted some sort of mining method through which electricity is consumed. Eating up electricity inevitably harms our environment because creating electricity requires the burning of fossil fuels. Thus, CyClean would have gone against its vision of making the earth a cleaner place. Because it is pre-mined, there is no electricity wasted. From its beginning CyClean was an environment friendly program.
2. CyClean’s pre-mine allows users to mine without consuming electricity
What? So by pre-mining, CyClean disregards traditional mining but introduces a whole new kind of mining? This may seem a bit confusing, but let me show you why it’s not. CyClean has pre-mined tokens that are allocated for mining. About 1 billion tokens. But instead of you running your GPUs and CPUs and ASICs, all you have to have is a CyClean product. You can mine with CyClean’s electric scooter. You can mine with CyClean’s electric bicycle. You can mine with CyClean’s solar panel. You can mine with CyClean’s health band. And the list goes on. As long as you use a CyClean product, you mine tokens without wasting electricity.
How does that work? For CyClean’s vehicles, all you have to do is ride the eco-friendly vehicles. Because you produce zero emissions, you are rewarded with CyClean tokens. This is how you mine. If you walk around with CyClean’s health watch, you contribute to a healthier you. Because you did this, you are rewarded with CyClean tokens. Do you see how it works? If you help the earth become a better place to live, you are rewarded. If you maintain your own health, you are rewarded. This is possible because of CyClean’s pre-mine.
CyClean’s Distribution is Proof of Fair Distribution
CyClean’s token distribution reveals to us that the CyClean team is allocating 90% of the tokens to CyClean’s community and its growth. Here’s a look at the pie chart.
The company only owns 10% of the total supply, which is more than fair. Over half is set aside for the token sale and mining. 35% is going to be put to use for platform development and for community events, such as airdrops and other promotions. From the way I see it, CyClean’s distribution seems fairer than the distribution of some proof-of-work cryptocurrencies that favor those with expensive mining devices.
Why Pre-mining is Sometimes Necessary
While those against pre-mining argue that pre-mining leads to uneven token distribution, quite the opposite is observed in some cases. Let’s take for example Auroracoin. Auroracoin was launched in early 2014 as an alternative to the krona, the official currency of Iceland. The creators of Auroracoin did something that was unprecedented at the time. They announced that they would distribute half of all the tokens to the citizens of Iceland. All 330,000 people. Making use of the national ID system, the tokens were given to the people. Everyone received the exact same amount, 31.8 Auroracoins. This seems like pretty fair distribution to me.
Another example of a pre-mined cryptocurrency is Nano, formerly known as Raiblocks. Raiblocks was 100% pre-mined, but the way it was distributed was unique as well. It also allowed for fair distribution, even for people without mining devices. Anyone who had a computer was able to solve CAPTCHA problems to receive free Raiblocks. Both people in developed countries and people in third-world countries could “mine” this cryptocurrency by completing an uncomplicated task.
CyClean’s Pre-mine is Great for These Reasons
Yes, like Auroracoin and Raiblocks, CyClean tokens were pre-mined. Consequently, the world has become a better place. There are two reasons why I say this.
1. CyClean’s pre-mine saves a ton of electricity that would otherwise have been consumed
If CyClean weren’t pre-mined, it probably would have adopted some sort of mining method through which electricity is consumed. Eating up electricity inevitably harms our environment because creating electricity requires the burning of fossil fuels. Thus, CyClean would have gone against its vision of making the earth a cleaner place. Because it is pre-mined, there is no electricity wasted. From its beginning CyClean was an environment friendly program.
2. CyClean’s pre-mine allows users to mine without consuming electricity
What? So by pre-mining, CyClean disregards traditional mining but introduces a whole new kind of mining? This may seem a bit confusing, but let me show you why it’s not. CyClean has pre-mined tokens that are allocated for mining. About 1 billion tokens. But instead of you running your GPUs and CPUs and ASICs, all you have to have is a CyClean product. You can mine with CyClean’s electric scooter. You can mine with CyClean’s electric bicycle. You can mine with CyClean’s solar panel. You can mine with CyClean’s health band. And the list goes on. As long as you use a CyClean product, you mine tokens without wasting electricity.
How does that work? For CyClean’s vehicles, all you have to do is ride the eco-friendly vehicles. Because you produce zero emissions, you are rewarded with CyClean tokens. This is how you mine. If you walk around with CyClean’s health watch, you contribute to a healthier you. Because you did this, you are rewarded with CyClean tokens. Do you see how it works? If you help the earth become a better place to live, you are rewarded. If you maintain your own health, you are rewarded. This is possible because of CyClean’s pre-mine.
CyClean’s Distribution is Proof of Fair Distribution
CyClean’s token distribution reveals to us that the CyClean team is allocating 90% of the tokens to CyClean’s community and its growth. Here’s a look at the pie chart.
The company only owns 10% of the total supply, which is more than fair. Over half is set aside for the token sale and mining. 35% is going to be put to use for platform development and for community events, such as airdrops and other promotions. From the way I see it, CyClean’s distribution seems fairer than the distribution of some proof-of-work cryptocurrencies that favor those with expensive mining devices.
Conclusion
You see, the opinion of the many is not always correct. Pre-mining has yielded excellent results for the cryptocurrencies we encountered above. Auroracoin, Raiblocks, and our very own CyClean are living proof of not only successful but energy-efficient cryptocurrencies. So why don’t we lay down our prejudices for a moment and think what is better for the world. In this case, CyClean and pre-mining benefits our earth and its people.
** For more information about CyClean, please visit our website at cyclean.io.
You see, the opinion of the many is not always correct. Pre-mining has yielded excellent results for the cryptocurrencies we encountered above. Auroracoin, Raiblocks, and our very own CyClean are living proof of not only successful but energy-efficient cryptocurrencies. So why don’t we lay down our prejudices for a moment and think what is better for the world. In this case, CyClean and pre-mining benefits our earth and its people.
** For more information about CyClean, please visit our website at cyclean.io.
