A new update published by CreditBit on Bitcoin Talk – a cryptocurrency forum titled ‘Show CreditBit your Trust’, details the new developments about the Creditbit Distribution Mechanism.
Creditbit, the MIT/X11 licensed cryptocurrency project’s migration of CRBIT coin to Ethereum token will have many effects. The CRBIT token, built on the top of Ethereum Blockchain, do not require an independent mining network or Confirmation Consensus Algorithms. CreditBit shares the algorithms and network with Ethereum.
One of the main features of the tokens is that the entire process of minting and distribution of newly minted coins is to be handled by the Creditbit team on their own.
Unlike the fiat currencies where some kind of Central Bank Authority decides upon the issuance of the currency, the decisions about the minting of decentralized currencies should be accepted with some consensus and quorum. Creditbit strives to keep currency and its management transparent and based on democratic principles.
The CRBIT token will have three minting processes.
Migration: The tokens under this process initially will be minted for a purpose of exchange for current CRBIT coins. Migration will take place via the website and the first round is targeted for 10th March 2017.
Proof of Pawn/Trust Distribution Mechanism: Community can vote for predefined proposals on how many new tokens will be minted and distributed in next time periods. At migration, each depositor will be able to vote for a favourite proposal, his/hers vote will be weighted by an amount of migrated coins. Later votings will be managed by CreditBit DAO organization.
Dev&Promo Funds: Community to decide upon minting of certain amount of tokens and deposit them on three dedicated Funds, each with different function.
- Development Fund will be explicitly dedicated to cover some of expenses to our Development Team
- Community Development Fund will be dedicated to Development Support Team
- Promotional Fund will be dedicated to Promo Team for promotional purposes
There is also CreditGAME project that will distribute a certain amount of coins each time period among winners. Each game will be allocated with fixed amount of tokens to distribute in a certain time frame.
Creditbit ended the update with the promise to come up with more details on CreditGAME and other mechanisms in next posts by next week.