NEM - premined?

General Discussion
#1

I am a bit worried about NEM. I want to use the Apostille functionality on a commercial basis - it could be pretty big and successful.

But there are detractors that say that NEM is a scam. They say the fact that the coins were pre-mined, is a strong sign of a scam. Look, I am not saying it, I am just worried about the allegations. I want NEM to be an awesome coin/blockchain, and want to develop on top of it an build a business around it.

I just want to be sure it is going to be around, basically forever, and that it will always be supported etc.

So I really would like to know what commitment/support etc is in place to ensure the continued existence of NEM.

Also, why were all the coins pre-mined? And who now owns all the coins? This is a bit of a concern.

Hopefully this post does not get met with hostility, but a thorough explanation to put my mind at ease. It is the only thing that has been holding me back from going all-in for my commercial venture (which will be very beneficial to NEM, as I would need to do a LOT of Apostille transactions - adding fees to blocks).

Thanks!

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#2

All XEMs were created at launch. There is no mining in NEM because mining is a waste of resources: https://blog.nem.io/what-are-poi-and-vesting

At launch coins were distributed between thousands of people who showed interest in this project.

No new coins wiil be ever created. Zero inflation is good for investors.

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#3

As Rigel already mentioned, 0 XEM were premined since there is no mining in NEM. That means that running NEM blockchain is much cheaper then running any Bitcoin-like blockchain - which also means that NEM has much higher chance of survival in long run. Just for comparison: NEM has around 450 full high performance nodes running (
https://supernodes.nem.io), Bitcoin has 5600 full nodes which is ~ 11 times more but Bitcoin market cap is 400 times bigger…

The disadvantage of no mining is that all coins has to be created at the beginning of the project, but these coins were distributed to more then thousand people who signed up for small fee before project started. Around 25% of coins were set aside for development bounties which will fund future growth of NEM
https://nemnodes.org/richlist/

Regarding recent developments in NEM you should read this NEM/Mijin Blockchain Technology Briefing January 2017

#4

Hi @rajc, do you have up-to-date stats for current bitcoin and NEM nodes?

#5

https://nemnodes.org/
https://nemnodes.org/nodes/

Here you go :slight_smile:

#6

I might be wrong, but isn’t premining strictly the act of mining privately with a low chain difficulty for your own benefit before opening the network up publicly? But like a lot of terms in crypto, it gets thrown around quite a bit to include proof of stake platforms too (it’s true that coin distribution is a different kettle of fish, with its own set of problems, for PoS coins/platforms, though).

Yes, there are sizeable dev funds, but this is a small proportion of total coins compared to projects like Stellar or Ripple. NEM also has a community fund for financial support that anyone can apply for.

NEM’s been around for a long time, and trades in solid work rather than hype, and so stands to be around for a good while yet. The API is fully-featured, very well-documented, and let’s you crack-on immediately with web apps.