Why it is important to board only quality projects in NULS POCM

“We immediately think that the new POCM project would benefit from NULS rewards, but to me, the exposure to more than 50K NULS combined community members from Twitter, Telegram, WeChat, Reddit is the biggest win.”

Proof of Credit Mining (POCM) is a great and innovative method that NULS has enabled to allow new enthusiastic teams to fund their projects in the initial stage by seeking support from NULS holders in a genuine and legitimate way. POCM allows existing NULS holders to earn new coins of new projects as rewards, which can be much more profitable if the new projects become successful. Aleph, MXT, OBEE are some projects that have performed tremendously well that were spun up from the POCM platform.

While POCM can be greatly beneficial to NULS holders if the new projects spun from POCM system do well, however, letting incompetent projects to board on POCM system can be detrimental for the entire NULS ecosystem for a number of reasons.

Like in many other areas of value creation, cryptocurrency or blockchain projects have to work hard to build community and introduce innovations to create the value of the underlying tokens/coins. Bitcoin was not valued as much as it is now in its early stage. However, people started to see the value because of its groundbreaking technology that led to community growth.

Like bitcoin, NULS has worked hard to create value over time by inventing new technologies and building community. We all know it is relatively undervalued compared to many other established projects, nevertheless, it has a value that is being traded at US$ 0.28 on exchanges at the time of writing this article.

For most of the new projects that join the POCM platform, coins offered by those projects have literally zero value until they can be traded. NULS earned by those projects from the POCM mechanism already has value. If those projects or team members are not working hard enough to promote their projects, it is hard to believe that they would value the NULS earned from POCM, consequently likely to dump those NULS on the market at whatever price they get.

There can be other adverse consequences, in addition, to decline in NULS price for boarding incompetent team/projects on POCM. To list some of those are:

• New competitive projects that can have very higher potential may hesitate to join POCM due to past failed projects
• NULS investors lose capital due to reduction of NULS price
• New investors may not be attracted to invest in NULS
• NULS entire team and developers will not get value for their hard work

It is understandable that with the current low price of NULS coin, projects joining on the POCM system will also generate relatively small amounts from POCM rewards. So, it may be difficult to implement stringent policy by the NULS team, however, we should set certain rules in place so that the entire NULS ecosystem is protected from potential scam projects.

I believe, both the community and the core team can do their part to enhance the POCM system.

From the community team member perspective, they can stake on POCM projects that show high standards.

Some of the benchmarks that the community members can look at can be:

• project vision
• whitepaper contents originality
• project team/admin response in the community channels
• how well they fulfil their promise
• the ability to trade NRC20 tokens or convert it to other tokens
• have they purposely added fake users in community channels to show large community size
• website content

Similarly, the NULS team that assesses new POCM projects can apply certain measures to hold them responsible if they trick the community members.